New Delhi, Dec 16 (IANS): The Indian government on Friday said that the completion of revised Double Taxation Avoidance Agreement (DTAA) with Cyprus has been notified which will enable the treaty to come into effect from April 1, 2017.

"Both sides have now exchanged notifications intimating the completion of their respective internal procedures for the entry into force of the DTAA, with which the revised DTAA shall come into effect in India in the fiscal year beginning on or after 1st April, 2017," said a Finance Ministry statement. 

The revised DTAA will enable source based taxation of capital gains on shares, except in respect of investments made prior to April 1, 2017. In addition, the DTAA will also bring into effect updated provisions as per international standards and in accordance with the consistent position of India. 

A revised agreement between India and the Mediterranean island nation for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, along with its protocol, was signed on November 18, and will replace the existing DTAA signed on June 13, 1994. 

"The bilateral economic ties between the two countries are expected to be further strengthened by these measures," the statement said.