I-T officials investigating Jane Street for tax treaty breach; Singapore link under scrutiny: Report
Tax authorities are conducting an investigation into Jane Street's potential tax treaty violations, specifically examining if the firm routed profits through Singapore entities for its Indian market derivative trades, according to three informed sources, quoted by Reuters (anonymously).
Income tax
officials have been conducting searches at the American trading firm's Indian offices since last week. A government official familiar with the situation indicated that Jane Street personnel were not being cooperative.
The tax inquiry follows the Securities and Exchange Board of India's (SEBI) temporary restriction, where the regulator publicly claimed the firm had manipulated stock indices through derivatives positions.
While Jane Street has contested Sebi's claims, they have remained silent regarding the tax investigation.
The investigation reportedly centres on whether Jane Street circumvented the General Anti-Avoidance Rules (GAAR) by utilising the Double Taxation Avoidance Agreement (DTAA) between India and Singapore to avoid taxes on substantial profits from Indian derivative trading, according to all three sources.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Premium 1 BHK at Mahindra Citadel – Coming Soon!
Mahindra Citadel
Enquire Now
Undo
The DTAA aims to prevent dual taxation for residents, whilst GAAR enables countries to refuse tax benefits used solely for avoidance purposes.
Indian tax officials are examining whether Jane Street deliberately recorded higher profits on Indian market derivatives positions through Singapore entities to reduce tax liability, confirmed all three Reuters informed sources.
SEBI's July 4 ban order revealed Jane Street's Indian trading earnings exceeded $4 billion from January 2023 to May 2025.
The order showed profit distribution across entities: JSI Investments and JSI2 Investments (India) earned 39.35 billion Indian rupees ($448.23 million), Jane Street Singapore gained 256 billion rupees ($2.92 billion), and Jane Street Asia Trading (Hong Kong) recorded 69.30 billion Indian rupees ($789.39 million).
Should the tax investigation reveal rule violations, Jane Street might face tax demands, according to the third source.
Tax authorities are attempting to examine Jane Street's overseas-maintained accounts.
The second source indicated that SEBI provided the tax department with financial details of the four Jane Street group entities mentioned in their orders.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
5 minutes ago
- Hindustan Times
White House says Russia wants to meet Donald Trump amid talks to end Ukraine war
The White House on Wednesday said that Russia asked for a meeting between Vladimir Putin and US President Donald Trump, and that the Republican was open to such an arrangement. US President Donald Trump and Ukrainian President Volodymyr Zelensky discussed the possibility of a meeting with Vladimir Putin in a call.(AP) The statement comes after reports suggested that Trump could meet his Russian counterpart and Ukraine's Volodymyr Zelensky as soon as next week in a renewed bid to end the war between Moscow and Kyiv. "The Russians expressed their desire to meet with President Trump, and the president is open to meeting with both President Putin and President Zelensky," White House Press Secretary Karoline Leavitt told reporters. AFP reported, citing a senior Ukrainian source, that Trump and Zelensky discussed the possibility in a call that also included NATO Secretary General Mark Rutte and the leaders of Britain, Germany, and Finland. The call came after Washington's envoy Steve Witkoff visited Moscow for talks with Putin earlier in the day. Donald Trump's meeting with Vladimir Putin and Volodymyr Zelensky may happen next week According to media reports, Donald Trump's meeting with Vladimir Putin may happen as soon as next week. The New York Times reported that Trump intended to meet first with Putin and then follow that meeting with a three-way summit that would also involve Ukrainian President Volodymyr Zelensky. NATO and Ukrainian officials are yet to confirm the report. Earlier on Wednesday, Trump hailed the meeting between his envoy Steve Witkoff and Putin as "highly productive," but US officials said sanctions would still be imposed on Moscow's trading partners, including India, by Friday. The Republican had earlier on Wednesday announced an additional 25 percent tariff on India for buying Russian oil. The total tariff on Indian goods imported to the US now stands at 50 percent. Trump, who had boasted he could end the conflict within 24 hours of taking office, has given Russia until Friday to make progress towards peace or face new sanctions.
Economic Times
5 minutes ago
- Economic Times
Is Google's AI revolution a threat to website traffic for digital publishers? Here are strategies to stay ahead
Is Google's AI Overviews Causing a Drop in Website Traffic? News Outlets and Media Feel the Pressure From Google Search Changes Live Events Traffic Shifts: Who's Gaining and Who's Losing Valuable Clicks: Why AI Responses Still Drive Engagement AI Mode Launch: Changing How We Search FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Google is pushing back against recent reports that its AI-powered search features are hurting website traffic, as per a report. The tech giant published a blog post on Wednesday, which was written by VP and Head of Google Search, that said click volume across the platform has remained 'relatively stable' compared with the same time last year, though some types of websites are seeing gains while others are seeing comments come just weeks after asuggested that users are 'less likely' to click on links when presented with, known as, which appear at the top of search results, as reported by The Verge. Google disputes those findings, arguing that many third-party studies rely on 'flawed methodologies,' according to the READ: Candace Owens bets $300,000 Brigitte Macron is male — even lawsuit can't stop her claim The findings matter because changes to Google Search have already sent ripples through the, as per the Verge report. A Wall Street Journal report detailed how outlets like Business Insider, The Washington Post, and HuffPost have seenfollowing the rise of AI features such aswhich has forced some media organisations to reduce staff, as per the report. Independent websites have also struggled to maintain visibility in search results due to Google's algorithms, according to The Verge READ: New driving rule could cost you big — what every American motorist must know before September 1 According to Reid, AI is changing how users search, but not necessarily reducing engagement, reported The Verge. She pointed out that there are 'decreased traffic to some sites and increased traffic to others,' while "websites with forums, videos, podcasts, and authentic voices benefitting the most," as per the per The Verge report, users are also more likely to visit websites that contain in-depth reviews, original posts, or thoughtful READ: As the July jobs report paints a grim picture, 114 companies plan layoffs in August - is yours on the list? Reid highlighted that, 'We continue to send billions of clicks to websites every day and believe that Search's value exchange with the web remains strong,' as quoted in The Verge also noted that while some users might not click on citations in AI Overviews, those who do tend to spend more time on the site exploring a topic in depth, according to the report. She explained that, 'An AI response might provide the lay of the land, but people click to dive deeper and learn more, and when they do, these clicks are more valuable,' as quoted by The tech giant's comments come as Google rolled out AI Mode to all users in the United States, a feature that functions like a chatbot within search, according to the report. Despite concerns from digital publishers, Google is pressing ahead, testing new AI-curated search results pages that aim to reshape how people discover information online, as per The Verge Overviews are AI-generated summaries that appear at the top of search results to provide quick media organizations like Business Insider, The Washington Post, and HuffPost have seen declines in traffic, partly due to AI-driven changes in search, as per The Verge report.
India Today
14 minutes ago
- India Today
In numbers: Trump doubles tariffs, targets India over Russian oil trade
US President Trump will double tariffs on India to 50% this month, punishing New Delhi for buying Russian oil, citing its continued imports of Moscow's IT MATTERS This sharp escalation comes on top of a previous 25% tariff set to take effect overnight, effectively doubling the trade penalty. The move follows failed US–Russia talks over the Ukraine war and deepening tensions between Washington and New Delhi. India's energy ties with Moscow — and its role in the Brics bloc — are now at the centre of a growing geopolitical NUMBERS25% — Additional tariff rate imposed by Trump on Indian goods.21 days — Time until the new duties take effect.25% — Existing country-specific tariff already scheduled to start overnight. IN DEPTHThe measure stacks on top of the existing 25% tariffs already set to take effect, doubling the penalty for affected Indian exports. The order frames India's Russian oil trade as part of an "unusual and extraordinary threat" to US national security, putting New Delhi in the crosshairs of Washington's Russia sanctions policy. It also signals to other countries that buying Russian crude could bring similar US trade retaliation. Signed on August 6, the executive order uses emergency powers under US law. It expands earlier measures that banned Russian oil imports and targeted Moscow's hostile actions says India is "directly or indirectly" importing Russian Oil, either buying it outright or through intermediaries. In the White House's view, those purchases help fund Russia's war in Ukraine and prolong the conflict. BIG PICTUREThis is the most aggressive trade move against India since Trump's first term. This move is the sharpest escalation in US–India trade tensions in years. In 2019, Trump stripped India of special tariff-free treatment under the Generalised System of Preferences. Now, the White House is framing India's energy policy as a direct challenge to US foreign policy on Russia. WHAT THEY SAID"They're fuelling the war machine. And if they're going to do that, then I'm not going to be happy." — Donald Trump, US President- Ends
