India's Central Board of Direct Taxes (CBDT) has clarified that exemptions from the Principal Purpose Test (PPT) under Double Taxation Avoidance Agreements (DTAAs) with countries like Mauritius, Cyprus, and Singapore won't interfere with domestic anti-abuse rules. This clarification is significant, especially since India and Mauritius amended their tax treaty in April 2024 to include the PPT. The PPT aims to prevent large companies from avoiding taxes by scrutinizing business arrangements made purely for tax benefits . In January, the CBDT had announced that the PPT wouldn't apply to past investments made under certain tax treaties with countries like Mauritius, Cyprus, and Singapore.