The press release said “the notification of Cyprus under section 94A of the Income Tax Act, 1961, as a notified jurisdictional area for lack of effective exchange of information, has been rescinded with effect from 1.11.2013 (Notification No. 114/2016 dated 14.12.2016).”
In addition, the Double Taxation Avoidance Agreement that was signed last month by Ravi Bangar, High Commissioner of India to Cyprus on behalf of India and Harris Georgiades, the Minister of Finance on behalf of Cyprus, is prepared to take effect in India for fiscal years beginning on or after April 1, 2017.
“The revised DTAA will enable source based taxation of capital gains on shares, except in respect of investments made prior to 1st April, 2017. In addition, the DTAA will also bring into effect updated provisions as per international standards and in accordance with the consistent position of India”
“The bilateral economic ties between the two countries are expected to be further strengthened by these measures,” ended the press release.