Article 13 and Article 24 of India – Singapore DTAA – in terms of the erstwhile Article 13(4), capital gains on shares acquired prior to 01 April 2017 are taxable only in Singapore and Article 24(1) i.e. Limitation of Relief, cannot be invoked if India does not have taxing right over such capital gains.

8. [2025] 174 taxmann.com 1244 (Mumbai - Trib.)

Prashant Kothari vs. Intl Tax Ward

IT Appeal Nos. 5391/Mum/2024

A.Y.: 2016-17 Dated: 29.05.2025

Article 13 and Article 24 of India – Singapore DTAA – in terms of the erstwhile Article 13(4), capital gains on shares acquired prior to 01 April 2017 are taxable only in Singapore and Article 24(1) i.e. Limitation of Relief, cannot be invoked if India does not have taxing right over such capital gains.

FACTS

The Assessee, a tax resident of Singapore, had earned capital gains from transfer of listed and unlisted shares which he had acquired before 01.04.2017. As per the computation, the Assessee had both losses and gains from such transfer. In respect of gains, the Assessee contented that in terms of Article 13(4) of the DTAA, such gains were taxable only in Singapore and in respect of loss, he had carried forward such losses under the Act.

The AO invoked the provisions of Article 24(1) of the DTAA dealing with limitation of relief, to contend that Assessee is entitled to treaty benefit, only if such gains are subject to tax in Singapore. The AO