Case Law Analysis
|Income Tax Appellate Tribunal
India-UAE DTAA | Tax Residency Trumps Actual Tax Payment for Capital Gains Exemption : ITAT Delhi
ITAT Delhi rules that under the India-UAE DTAA, capital gains from debt mutual funds are exempt in India if the assessee is a UAE tax resident, even if UAE does not levy personal income tax. The ruling clarifies that 'liable to tax' under the treaty refers to residence-based jurisdiction, not actual tax payment, impacting cross-border investors and tax planners.