{"id":368149,"date":"2026-07-24T15:10:33","date_gmt":"2026-07-24T09:40:33","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=368149"},"modified":"2026-07-24T15:10:33","modified_gmt":"2026-07-24T09:40:33","slug":"principal-purpose-test-ppt","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/principal-purpose-test-ppt\/","title":{"rendered":"Principal Purpose Test (PPT)"},"content":{"rendered":"<div>\n<div class=\"content-box-green\">\n<p><strong>News: <\/strong>India amended its tax treaty with Sri Lanka to include the Principal Purpose Test (PPT) and prevent treaty abuse.<\/p>\n<\/div>\n<\/div>\n<h2 class=\"red-h2-box\">About Principal Purpose Test (PPT)<\/h2>\n<figure id=\"attachment_368153\" aria-describedby=\"caption-attachment-368153\" style=\"width: 430px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-368153\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-Whalesbook-News.jpg?resize=430%2C225&#038;ssl=1\" alt=\"Principal Purpose Test (PPT)\" width=\"430\" height=\"225\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-Whalesbook-News.jpg?resize=300%2C157&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-Whalesbook-News.jpg?resize=768%2C402&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2026\/07\/Source-Whalesbook-News.jpg?w=926&amp;ssl=1 926w\" sizes=\"auto, (max-width: 430px) 100vw, 430px\" \/><figcaption id=\"caption-attachment-368153\" class=\"wp-caption-text\">Source &#8211; Whalesbook News<\/figcaption><\/figure>\n<ul>\n<li>The PPT is an<strong> anti-tax avoidance rule<\/strong> in <a href=\"https:\/\/forumias.com\/blog\/cabinet-approves-double-taxation-avoidance-agreement-between-india-chile\/\">Double Taxation Avoidance Agreements (DTAAs)<\/a>.<\/li>\n<li><strong>Features:<\/strong>\n<ul>\n<li>It <strong>allows tax authorities to deny treaty<\/strong> benefits <strong>if a main purpose of an arrangement is to gain a tax benefit.<\/strong><\/li>\n<li><strong>Treaty benefits are allowed only when the arrangement is genuine and consistent<\/strong> with the treaty&#8217;s purpose.<\/li>\n<li>It<strong> helps ensure DTAAs are used for legitimate trade, investment, and movement of people, not for tax avoidance.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Change after revision:<\/strong> Now, <strong>tax authorities will be empowered to examine the commercial intent behind an investment structure<\/strong> and <strong>deny treaty benefits if obtaining a tax advantage is considered one of its principal purposes,<\/strong> unless the arrangement is consistent with the treaty\u2019s object and purpose.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: India amended its tax treaty with Sri Lanka to include the Principal Purpose Test (PPT) and prevent treaty abuse. About Principal Purpose Test (PPT) The PPT is an anti-tax avoidance rule in Double Taxation Avoidance Agreements (DTAAs). Features: It allows tax authorities to deny treaty benefits if a main purpose of an arrangement is&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/principal-purpose-test-ppt\/\">Continue reading <span class=\"screen-reader-text\">Principal Purpose Test (PPT)<\/span><\/a><\/p>\n","protected":false},"author":10366,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872,10500],"class_list":["post-368149","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/368149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10366"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=368149"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/368149\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=368149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=368149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=368149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}