Taxpayer Can Claim DTAA Exemption for Pre-April 2017 Gains and Still Carry Forward Post-April 2017 Losses Under Income Tax Act

The Income Tax Appellate Tribunal (ITAT) has issued a ruling clarifying the interplay between domestic tax laws and Double Taxation Avoidance Agreements (DTAAs). The tribunal held that a taxpayer who has legitimately claimed benefits under a DTAA for capital gains accrued before April 2017 is not thereby precluded from carrying forward losses incurred after April 2017 under the provisions of domestic income tax law. This ruling provides welcome clarity on how treaty provisions interact with the carry-forward of losses under the Indian tax framework.