Evolution of Tax Residency Certificate Jurisprudence in India for Tax Treaty Benefit
The evolving jurisprudence around treaty benefits and tax residency has entered a critical phase with the Supreme Court’s ruling in Tiger Global International Holding[1] during early 2026, which has significantly reshaped the long‑standing reliance on Tax Residency Certificates (TRCs) in cross‑border transactions for tax treaty benefits. Historically viewed as conclusive proof for availing treaty benefits, the sanctity of the TRC has now been called into question. The decision not only challenges established administrative positions, such as CBDT Circular 789 of 2000, but also raises deeper concerns around substance, beneficial ownership, and the distinction between genuine investment structures and impermissible arrangements. As tax authorities and courts continue to navigate this complex terrain, the ruling opens the door to renewed scrutiny, increased litigation, and a pressing need for clarity on what constitutes sufficient economic substance and evidentiary thresholds in treaty claims. This article examines the implications of the Tiger Global decision, its interplay with anti-abuse provisions, and the emerging framework for eligibility to claim the tax treaty.
