India notifies amended tax treaty with Singapore; to impose capital gains tax at source of investments from April 1

The government on Thursday notified the amended India-Singapore tax treaty under which capital gains tax will be levied at source of investments with effect from April 1.

India had amended the tax treaty with Singapore on December 30, 2016, under which for two years beginning April 1, 2017, capital gains tax will be imposed at 50% of the prevailing domestic rate. Full rate will apply from April 1, 2019.

The revision of tax treaty will help curb revenue loss, prevent double non-taxation and streamline the flow of investments, a Finance Ministry statement said, adding that the amended tax treaty has been notified.