In response to a recent Supreme Court ruling affecting the tax benefits for foreign investors, particularly those from Mauritius, India has provided assurances regarding the continuation of the Double Taxation Avoidance Agreement (DTAA). The Cabinet note from Mauritius indicates that Prime Minister Narendra Modi has communicated to his counterpart that India will not undermine the current tax benefits enjoyed under the DTAA. This agreement has been crucial for investors, despite some of its provisions being challenged in court. Notably, the General Anti-Avoidance Rule (GAAR) will not be applied retroactively to investments made before April 1, 2017. However, the Supreme Court ruling raised additional concerns, including the validity of tax residency certificates and the treatment of indirect share transfers, which may necessitate legislative amendments to clarify tax treaty relief. Experts suggest that while the government's reassurance is significant, further clarity is needed on outstanding issues to restore investor confidence fully. Corporations are considering approaching the Central Board of Direct Taxes (CBDT) for further clarification on these matters.