Skip to content
Free updates Login
SSCBankingUPSC & State PSC

India-France DTAC Amended: Capital Gains Taxing Rights

26 February 20261 min read
INTERNATIONAL AFFAIRSIndia-France DTACAmended: CapitalGains TaxingRights26 February 2026safalsetu.com

Why in the news

The Government of India and France signed a protocol in February 2026 to change the tax treaty between them, which dates from 1992. The changes touch capital gains and the MFN clause.

Key facts

  • Treaty: Double Taxation Avoidance Convention (DTAC) between India and France, signed in 1992.
  • Change one: capital gains taxing rights lie with the country where the company is resident.
  • Change two: the Most-Favoured-Nation (MFN) clause is removed.
  • Reason for the second change: fewer tax disputes and greater clarity.

Amendments at a glance

ProvisionEffect of the protocol
Capital gainsTaxed by the resident country of the company
MFN clauseDeleted
AimReduce disputes, improve clarity

Exam angle

  • Parties: Government of India and France.
  • Original treaty year: 1992.
  • Full form: DTAC is the Double Taxation Avoidance Convention; MFN is Most-Favoured-Nation.

Test yourself

1. Which year's India-France Double Taxation Avoidance Convention was amended by a protocol in February 2026?

The convention being amended was signed in 1992.

2. Which clause was removed from the India-France DTAC under the new protocol?

The protocol removes the MFN clause to reduce disputes.

3. Under the amended India-France DTAC, who gets taxing rights over capital gains?

Taxing rights go to the country where the company is resident.

This topic is part of Daily Current Affairs 26 February 2026 (21 topics).

All topics of the dayDay quizFebruary 2026

Read more