New Delhi, Oct. 19 -- International investors have urged the government to address concerns over the use of the judicial anti-avoidance rule (JAAR) by tax authorities to deny treaty benefits on the sale of certain grandfathered shares.

The issue has raised concerns among foreign direct investors, including multinational corporations, private equity firms and venture capital funds, over the tax treatment of investments acquired before April 1, 2017.

JAAR was reportedly invoked to reject tax benefits claimed by at least three Mauritius-based investors on the sale of such shares, reported The Economic Times.

Under the amended India-Mauritius tax treaty, gains from the sale of grandfathered shares are exempt from capital gains tax. In Marc...