Updated 17 January 2026 at 12:20 IST
After Top Court Ruling, Govt Moves to Recover Taxes From Tiger Global
The Centre will initiate tax recovery proceedings against US-based investment firm Tiger Global Management after the Supreme Court ruled that capital gains from its sale of Flipkart shares are taxable in India. The income tax department will now revive stalled assessments, adjust withheld tax refunds and issue demand notices in line with the court’s verdict, marking a major development in India’s cross-border taxation regime.
The Centre will begin recovery of taxes from Tiger Global Management after the Supreme Court ruled that the investment firm’s capital gains from its exit from Flipkart are taxable under Indian law, senior government officials said.
The ruling clears the way for the Income Tax Department to revive assessment proceedings that had been kept in abeyance during the legal challenge and to raise tax demands for the relevant assessment year.
Supreme Court Overturns High Court Relief
In its judgment, the Supreme Court set aside a Delhi High Court ruling that had granted relief to Tiger Global by allowing exemption under the India-Mauritius Double Taxation Avoidance Agreement (DTAA). The apex court held that the structure used by the fund did not qualify for treaty protection and that the gains were liable to tax in India.
The case relates to Tiger Global’s sale of shares in Flipkart in 2018, when Walmart acquired a controlling stake in the e-commerce company. The transaction resulted in substantial capital gains for the fund.
Tax Demand To Be Raised For AY 2019–20
Following the verdict, tax authorities will resume assessment proceedings for Assessment Year 2019–20, which had been kept pending due to the ongoing litigation. Officials said the department would issue demand notices once the assessment is completed in line with the Supreme Court’s findings.
As part of the recovery process, the government will also adjust tax amounts that were previously withheld during the transaction.
Withheld Refund To Be Adjusted
Tiger Global had sought a refund of around ₹970 crore that was deducted as tax at source at the time of the Flipkart stake sale. Officials indicated that this amount would now be adjusted against the final tax liability instead of being released to the fund.
The total tax exposure, including interest and penalties, is expected to run into several thousand crore rupees.
-With inputs from Bloomberg
Published By : Shourya Jha
Published On: 17 January 2026 at 12:12 IST