Supreme Court rules Tiger Global must pay tax on $1.6 billion Flipkart-Walmart deal

19-Jan-2026

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In a major ruling with wide implications for foreign investors, the Supreme Court has held that capital gains arising from Tiger Global’s $1.6 billion stake sale in Flipkart to Walmart are taxable in India. 

The verdict marks a key win for the Indian tax authorities and settles a long-running dispute over the use of international tax treaties.

The top court ruled that Tiger Global is not entitled to claim tax exemption under the India–Mauritius treaty. It agreed with the Income Tax Department’s view that the structure used for the transaction was aimed at avoiding tax liability in India.

The court observed that the share sale agreement between Tiger Global and Walmart amounted to a tax-avoidant arrangement, and therefore could not enjoy treaty protection.

The Supreme Court clearly stated that the capital gains arising from the 2018 transaction are taxable in India. It underlined that taxing income generated within a country is an inherent sovereign right.