New Delhi, Feb. 23 -- India and France have signed a protocol amending the Double Taxation Avoidance Convention (DTAC) between the two countries.

Under the revised provisions, capital gains arising from the sale of shares will be taxable in the jurisdiction where the company is resident, granting full taxing rights to that country.

The changes to DTAC is aimed at updating the treaty in line with current international tax standards while strengthening bilateral economic cooperation.

As per an official statement from Central Board of Direct Taxes (CBDT), the amending protocol also removes the Most-Favoured-Nation (MFN) clause from the existing agreement, addressing longstanding interpretational issues.

The taxation framework for dividen...