Summary: The Ministry of Finance (Department of Revenue), through Notification No. S.O. 5611(E) dated 13 October 2026, has notified the Protocol amending the Convention between the Government of the Republic of India and the Government of Mauritius for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains and for the encouragement of mutual trade and investment. The Protocol was signed at Port Louis on 7 March 2024 and entered into force on 10 August 2026, following completion of the required procedures by both Contracting States. The notification, issued under section 159(1) of the Income-tax Act, 2025 (30 of 2025), provides that all provisions of the Protocol shall be given effect to in India in accordance with Article 3 of the Protocol. The amendments replace the Convention’s existing Preamble with language expressly addressing the elimination of double taxation without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance, including treaty-shopping arrangements intended to benefit residents of third jurisdictions indirectly. The Protocol also introduces Article 27B, titled “Entitlement to Benefits”, after Article 27A. Under the new provision, a benefit under the Convention shall not be granted in respect of an item of income where, having regard to all relevant facts and circumstances, it is reasonable to conclude that obtaining the benefit was one of the principal purposes of an arrangement or transaction that resulted directly or indirectly in that benefit. An exception applies where granting the benefit would be consistent with the object and purpose of the relevant Convention provisions.
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi
Notification No. 135/2026-Income-Tax Dated: 13th October, 2026.
S.O. 5611(E).— Whereas, a Protocol amending the Convention between the Government of the Republic of India and the Government of Mauritius for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains and for the encouragement of mutual trade and investment, was signed at Port Louis on the 7th day of March, 2024, as set out in the Annexure to this notification (hereinafter referred to as the said Protocol);
And whereas, the said Protocol entered into force on the 10th day of August, 2026, being the date of the later of the notifications of the completion of the procedures required for giving effect to the said Protocol in accordance with paragraph 1 of Article 3 of the said Protocol;
Now, therefore, in exercise of the powers conferred by section 159(1) of the Income-tax Act, 2025 (30 of 2025), the Central Government hereby notifies that all the provisions of said Protocol, as annexed hereto, shall be given effect to in the Union of India, in accordance with Article 3 of the said Protocol.
ANNEXURE
PROTOCOL AMENDING THE CONVENTION
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDIA
AND
THE GOVERNMENT OF MAURITIUS
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS AND FOR THE ENCOURAGEMENT OF MUTUAL TRADE AND INVESTMENT
The Government of the Republic of India and the Government of the Republic of Mauritius,
Desiring to amend the Convention between the Government of the Republic of India and the Government of Mauritius for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, and for the encouragement of mutual trade and investment, signed at Port Louis on 24th August, 1982, as amended by the Protocol signed at Port Louis on 10th May 2016 (hereinafter referred to as “the Convention”);
Have agreed as follows:
Article 1
The Preamble of the Convention shall be replaced by the following:
“The Government of the Republic of India and the Government of the Republic of Mauritius,
Intending to eliminate double taxation with respect to the taxes covered by this Convention without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Convention for the indirect benefit of residents of third jurisdictions),
Have agreed as follows:”
Article 2
The Convention shall be amended by adding after Article 27A the following new Article:
“Article 27B
ENTITLEMENT TO BENEFITS
Notwithstanding the other provisions of this Convention, a benefit under this Convention shall not be granted in respect of an item of income if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of this Convention.”
Article 3
1. Each of the Contracting States shall notify to the other the completion of the procedures required by its law for
the bringing into force of this Protocol. This Protocol shall enter into force on the date of the later of these notifications.
2. The provisions of this Protocol shall have effect from the date of entry into force of the Protocol, without regard to the date on which the taxes are levied or the taxable years to which the taxes relate.
IN WITNESS WHEREOF the undersigned, duly authorized, have signed this Protocol.
DONE in duplicate at Port Louis on this 7th day of March in the year 2024, in the English and Hindi languages, both texts equally authentic. In the case of divergent interpretation of the texts, the English text shall prevail.
For the Government of the Republic of India
For the Government of the Republic of Mauritius
[F. No. 135/2026/F. No. 500/03/2012-FTD-II]
BHASKAR GOSWAMI, Jt. Secy.
