India: Capital Gains Tax

In Fireeye Ireland Ltd v ACIT, the Delhi Bench of the Income Tax Appellate Tribunal (ITAT) allowed the benefit of the capital gains tax exemption to an Irish tax resident on sale of shares of a US LLC deriving substantial value from India, a transaction commonly referred to as an ‘indirect transfer’. While allowing such exemption, the ITAT relied on Article 13(6) of the India-Ireland Double Taxation Avoidance Agreement (DTAA) which provides that income arising from the alienation of assets is taxable only in the state of which the seller is a resident.

Hon’ble Mumbai Tribunal holds that where the sale consideration for unquoted shares exceeds the Rule 11UA FMV, the AO cannot substitute the actual consideration with a higher value derived from asubsequent independent strategic transaction.

India’s Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) were designed as tax-efficient ways to invest in income-producing assets through a regulated, transparent structure. That promise remains, but three successive legislative reforms between 2023 and 2026 have changed the tax structure for these business trusts and their investors.

プライベート・エクイティ・ファンドは、通常10年から12年の存続期間を有する集合投資ビークルとして運営されます。リミテッド・パートナー（Limited Partner “LP”）は、ゼネラル・

A Division Bench of the Rajasthan High Court has ruled that Build-Operate-Transfer concessionaires must pay GST on works contract services rendered to NHAI, treating toll collection rights as taxable consideration. This landmark judgment fundamentally reshapes the tax landscape for highway PPP projects, potentially affecting project bankability, investor appetite, and the cost mechanics for developers participating in India's infrastructure development bids.

India’s General Anti-Avoidance Rule (“GAAR”) framework has long rested on a critical assurance to investors: investments made prior to 1 April 2017 would remain outside the scope of GAAR scrutiny. For nearly a decade, this grandfathering protection was widely understood to extend to gains realised on the eventual transfer of such investments, irrespective of when the exit occurred.

Over the last few years, a consistent shift has been reshaping how Indian companies are going global. Indian founders and family-owned groups are no longer waiting until they "become global" to think internationally.

For Alternative Investment Funds (AIFs) in India, the second certainty often proves more complex than the first.

We are pleased to present the latest edition of Tax Street – our newsletter that covers all the key developments and updates in the realm of taxation in India and across the globe for the month of January 2026.