Govt amends tax treaty with France, revises dividend tax structure
The government said it has also modified how it taxes dividend income, replacing the existing flat 10 per cent rate with a split structure
 "Govt amends tax treaty with France, revises dividend tax structure")
India has amended its tax treaty with France and removed the most-favoured-nation clause, the finance ministry said on Monday.
The government said it has also modified how it taxes dividend income, replacing the existing flat 10 per cent rate with a split structure.
Under the revised framework, dividend income will now be taxed at 5 per cent for shareholders holding at least 10 per cent of a company's capital and at 15 per cent for all other investors.
Reuters reported on December 12 that India and France have struck a deal to revise their 1992 treaty to halve the tax on dividends paid by Indian units to French parents.
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