India, Feb. 25 -- India and France have revised their three-decade-old tax treaty, a move expected to reduce dividend levies for major French investors while safeguarding India's tax base and aligning the framework with global standards.

According to a report by BBC, the amended agreement lowers dividend tax to 5 per cent for French companies holding at least 10 per cent stake in an Indian firm, while raising it to 15 per cent for holdings below 10 per cent.

The changes are likely to benefit major corporations such as Sanofi, Renault, and L'Oreal, which have expanded their presence in India.

The revised treaty also expands New Delhi's taxation rights over capital gains arising from share sales, including transactions where a French ent...