BnB’s Tax Alert | January 2026 | Tiger Global Judgment & India’s Evolving Approach to International Tax

The Supreme Court’s ruling in Tiger Global marks a clear shift in India’s approach to international taxation. The Court has moved away from a form-based reliance on treaty entitlement and Tax Residency Certificates, placing greater emphasis on commercial substance and anti-abuse principles. In doing so, it departs from earlier precedents such as Azadi Bachao Andolan, which favoured certainty and judicial restraint. The judgment gives primacy to exit-year substance over entry-year investment conditions, narrows the scope of grandfathering, and signals that treaty benefits may be denied where arrangements are primarily tax-driven.

The ruling also aligns India more closely with global anti-avoidance standards under the OECD BEPS framework and judicial practice in other jurisdictions. By prioritising economic substance over formal treaty claims, the Court has reinforced India’s commitment to protecting its tax base while remaining aligned with international norms. The decision is likely to prompt a re-evaluation of India-focused investment structures, particularly for private equity and venture capital investors, with closer scrutiny of routing, exit planning, and governance substance. TRCs will no longer provide a safe harbour, increasing compliance burdens for taxpayers and withholding obligations for payers. Clear and timely regulatory guidance will be critical to ensure consistency and preserve investor confidence.

We are sharing a detailed alert analysing the judgment, its implications, and key takeaways for investors and payers. We look forward to engaging with your views on this important development.