India and Mauritius amended their tax treaty in 2016 Consider the following statements regarding thi...........

Economic Affairs Foreign Investment

India and Mauritius amended their tax treaty in 2016. Consider the following statements regarding this :

1. Now India will be allowed to tax capital gains(profit from the sale of property or an investment) arising out of Mauritius.

2. Investments made prior to April 1, 2017 will not be liable to capital gains tax.

3. The interest income of Mauritian resident banks in respect of debt-claims existing on or before March 31, 2017 will, however, be exempted from tax in India.

Which of the statements given above is/are correct:

1 and 2 only

2 only

2 and 3 only

1, 2 and 3

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Explanation:

exp: India and Mauritius amended their tax treaty in 2016. Now India will be allowed to tax capital gains(profit from the sale of property or an investment) arising out of Mauritius. Investments made prior to April 1, 2017 will not be liable to capital gains tax.The interest income of Mauritian resident banks in respect of debt-claims existing on or before March 31, 2017 will, however, be exempted from tax in India