France and India signed a protocol updating their tax treaty, cutting certain dividend taxes and allowing India to tax share-sale gains.
France and India signed an amending protocol on 17 February 2026 to update the income and capital tax treaty.
Earlier, Under the proposed amending protocol, the withholding tax on dividends paid to French investors holding at least 10% of an Indian company’s capital would fall from 10% to 5%. Dividends not meeting this holding condition would face a 15% levy. The protocol also removes the 10% participation threshold for taxing gains from the sale of shares, allowing India to tax such gains regardless of the stake held by French investors.
The protocol will take effect once the ratification documents have been exchanged.
