new delhi june 30 india and cyprus have successfully completed negotiations on the bilateral tax treaty which provides for sourcebased taxation of capital gains on share sale cyprus finance ministry said today the double taxation avoidance agreement grand fathers all income prior to april 1 2017 on june 29 2016 the negotiation on the double taxation agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income between cyprus and india has been successfully completed in new delhi cyprus finance ministry said in a statement cyprus is a major source of foreign fund flows into the country from april 2000 till march 2016 india received foreign direct investment worth rs 4268076 crore from cyprus the agreement reached provides for sourcebased taxation for gains from the alienation of shares investments undertaken prior to april 1 2017 are grandfathered with the view that taxation of disposal of such shares at any future date remains with the contracting state of residence of the seller the statement said the text has been agreed between the two negotiating teams of the contracting states and will contribute to further develop the trade and economic links between cyprus and india as well as with other countries upgrading and expanding the network of double tax conventions is of high economic and political importance and aims to further strengthen and attract foreign investment in cyprus as its standing an international business centre is elevated it added the completion of the negotiation and the agreement reached on all pending issues will pave the way for the removal of cyprus from the list of notified jurisdictional areas it has been agreed that following the entering into force of the amending agreement the indian authorities will proceed with retrospectively rescinding the classification of cyprus in the notified jurisdictional area as from november 1 2013 the statement added jd mr