The Cypriot Ministry of Finance confirmed on 29.6.2016 the successful completion of 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.
Undoubtedly, once an agreement is reached between Cyprus and India, this will effectively lead to the removal of Cyprus from India's list of notified jurisdictional areas (Cyprus is part since 2013).
The agreement reached provides for source based taxation for gains from the alienation of shares; investment made before 1.4.2017 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.