The DTAC amending protocol will remove the Most-Favoured-Nation (MFN) clause embedded in the Double Taxation Avoidance Convention, putting to rest long-standing disputes surrounding its interpretation and application. The intent of amending the double tax avoidance convention seems to serve the twin purpose of addressing ambiguity in provision of treaty benefits as well as equitable distribution of taxation rights, according to Abheet Sachdeva, Partner - M&A Tax, Nangia Global, a professional services firm. Sachdeva also highlighted that dividends emanating from India are subject to a 10% tax deducted at source (TDS). Also Read | India, France deepen strategic ties with Hammer missile manufacturing pactWhat would the tax changes mean? Sachdeva said that the tax changes are likely to attract more foreign direct investment (FDI) from France by allowing companies to send higher post-tax profits from India back to their home country.

Source: Mint February 23, 2026 16:02 UTC