New Delhi, Jan. 28 -- On 9 January, the Bengaluru bench of the Income Tax Appellate Tribunal (ITAT) ruled against Binny Bansal, co-founder of Flipkart, denying him non-resident status for fiscal year 2019-20 (FY20), a move that would have allowed him to avoid capital gains tax on the sale of his shares in India by claiming benefits under the India-Singapore tax treaty.

A week later, the Supreme Court delivered a similar message in a separate case involving Tiger Global. It ruled that the investor must pay tax on its 2018 sale of shares in an Indian portfolio company, rejecting its attempt to claim treaty benefits through Mauritius. The court held that a tax residency certificate alone is not sufficient and that foreign investors must dem...