The Double Taxation Avoidance Agreement (DTAA) between India and Mauritius provides several benefits for taxpayers of both countries. Some of the key benefits of the India-Mauritius DTAA are:

Avoidance of double taxation: The primary objective of the DTAA is to eliminate the possibility of the same income being taxed twice in both countries. The DTAA ensures that the income is taxed only once in either of the countries.

Reduced tax rates: The DTAA provides for reduced tax rates on certain types of income, such as dividends, interest, and royalties. For example, under the DTAA, the tax rate on dividend income is reduced to 5% for certain categories of investors.

Capital gains tax exemption: One of the most significant benefits of the DTAA is the exemption from capital gains tax on the sale of shares. As per the DTAA, capital gains arising from the sale of shares of an Indian company by a Mauritius resident are exempt from tax in India.

Avoidance of withholding tax: The DTAA provides relief from withholding tax on certain types of income, such as interest and royalties. Under the DTAA, withholding tax on interest is reduced to 7.5%.

Mutual assistance: The DTAA provides for mutual assistance between the tax authorities of India and Mauritius in the administration of tax laws and prevention of tax evasion.

It is important to note that the DTAA provisions and benefits may differ depending on the specific terms of the agreement and the circumstances of the taxpayer. It is advisable to seek professional advice to understand the specific implications of the India-Mauritius DTAA for your particular case.