I-T department probes foreign funds after SC's Tiger Global ruling
India's Income Tax department just sent notices to at least seven foreign venture capital and private equity firms, right after the Supreme Court ruled against tax treaty benefits in the Tiger Global case.
Officials in Mumbai and Bengaluru are now asking these firms—mostly operating out of Mauritius and Singapore—for a deep dive into their finances and ownership.
Major implications for foreign investors
This move means foreign funds can't just rely on old tax loopholes anymore.
The I-T department wants details like who actually owns these companies, where their money comes from, and if they're doing any shady related-party deals.
With stricter rules, the possible invocation of GAAR, and the new financial year starting April 1, 2026, which brings imminent compliance deadlines, global investors will have to be extra careful about how they operate in India—or risk facing some serious back taxes.