Notification no. SO 1144(E) [No. 17/2016][File no. 503/4/2005-FTD-II] dated 16.3.2016
Government of India has entered into a new DTAA with Indonesia. The new DTAA has 31 Articles including two newly introduced articles on ‘Limitation of Benefits’ and ‘Assistance in Collection’. One of the crucial points provided under the new DTAA is that capital gain from transfer of shares of a company shall be taxable in the country in which said company is resident. Earlier, such capital gain was taxable in the country of residence of an assesse.