On May 10, 2016, India and Mauritius signed the protocol (the “Amendment Protocolâ€) amending the Treaty for Avoidance of Double Taxation and Prevention of Fiscal Evasion dated August 26, 1982 (the “Treatyâ€). The Amendment Protocol intends to tackle issues of treaty abuse, round tripping of funds and curb revenue loss. The key change that will raise investor’s eyebrows is the imposition of a capital gains tax on the sale of shares by a Mauritian company holding shares in an Indian company.