India seeks to tax Jane Street’s profits: Report

Indian tax officials surveyed Jane Street’s local units following the July 3 interim order by the SEBI, according to financial statements filed with government.

Indian officials recommended denying Jane Street Group LLC’s benefits under a tax treaty with Singapore, the Economic Times newspaper reported, threatening to compound the trading firm’s challenges in the country.

The investigation unit of the income tax department recommended the invocation of general anti-avoidance rules and suggested that profits recorded by the firm in India should be taxed as capital gains, the report said, citing people it didn’t identify. The team examined Jane Street’s profits in India during the period that was probed by the country’s market regulator for alleged manipulation, according to the newspaper report.

Indian tax officials surveyed Jane Street’s local units following the July 3 interim order by the Securities and Exchange Board of India, according to financial statements filed with the government. Indian regulator alleged that the US-based trading firm, along with its entities in India, Singapore, and Hong Kong, manipulated markets and directed the company to disgorge over 48 billion rupees in what it termed “illegal gains”.

While Jane Street complied with the SEBI’s order, it has dismissed the market regulator’s allegations and vowed to exercise its legal right. The trading firm appealed the order in a Mumbai appeals court in September, the outcome of which is still pending.

The global quantitative trading giant and Indian tax authorities did not respond to emails for a comment outside of business hours.

Jane Street, which made nearly $7 billion in trading revenue in the third quarter, traded equities, stock futures and index options in India after it began operations following the pandemic. The New York-headquartered firm made profits of more than $4 billion in trading gains between January 2023 and March 2025, according to SEBI’s initial order.