Tiger Global Ruling: India's Tax Certainty Debate Reignited
Business
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Moneycontrol•19-01-2026, 13:59
Tiger Global Ruling: India's Tax Certainty Debate Reignited
- •The Supreme Court upheld taxability on gains from the sale of a Singapore-based company's shares, focusing on transaction substance over legal form.
- •The ruling emphasizes commercial realities and anti-avoidance principles, stating a Tax Residency Certificate (TRC) is not conclusive for treaty entitlement.
- •GAAR provisions are now firmly embedded, applicable even to pre-April 2017 share acquisitions if sold after GAAR's applicability.
- •The decision implies tax authorities may scrutinize past and ongoing transactions, requiring taxpayers to document commercial rationale for deals.
- •The ruling highlights India's tax sovereignty but raises concerns about investor confidence if applied aggressively to past transactions.
Why It Matters: The Tiger Global ruling redefines India's tax landscape, prioritizing substance over form and strengthening GAAR.
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