Executive summary
On 13 October 2020, an Indian Court (Tax Tribunal1) held2 that the dividend distribution tax (DDT) rates, prescribed under the Indian Domestic Tax Laws (DTL), on dividends paid to shareholders by an Indian company is required to be restricted to the rates prescribed under the applicable tax treaty, provided that the conditions for entitlement to treaty benefits are satisfied.
The Tax Tribunal noted that when considering the rates for the taxation of dividend income under the…