 "foreign portfolio investors, FPI")
The income-tax (I-T) department has intensified its scrutiny of foreign portfolio investors (FPIs) in Mauritius who are claiming tax benefits under the India-Mauritius treaty.
In the past two weeks, over half a dozen Mauritius-based FPIs have received notices from the I-T department regarding their Tax Residency Certificates (TRCs), according to sources.
“The department requested copies of TRC applications. Some FPI administrators declared no permanent place of business in Mauritius, which could justify denying tax benefits. Five to seven FPIs received demands to recover taxes on derivatives income,” said a source with direct knowledge of the developments.
The Central Board of
