Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — India has double taxation avoidance agreement with Mauritius
Concept & Option Breakdown
Standard Reference VerifiedThe Double Taxation Avoidance Agreement (DTAA) between India and Mauritius historically exempted Mauritius-based residents/entities from capital gains tax on the sale of Indian securities, leading many international investors to route funds via Mauritius (round-tripping and treaty shopping).
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