India, France Revise 1992 Tax Treaty

India and France have agreed to update their old tax treaty from 1992.

This update will change how taxes are applied to dividends and share sales.

French companies with more than 10% stake in Indian companies will now pay a lower tax on dividends (5% instead of 10%), but those with less than 10% stake will pay a higher tax (15% instead of 10%).

India will also be able to tax share sales by French investors without any stake threshold.

Additionally, the 'most favoured nation' status for France, which gave it certain tax advantages, will be removed.

This change is expected to boost investment and provide tax certainty between the two countries.

The new treaty is subject to final approval by India's cabinet.