Structuring Success | Tax and Business Blogs by EAZTAXBIZ

  Q4 Tax Alert for Partnership Firms: Section 194T Makes Partner Remuneration Planning a Year-End Priority With the fourth quarter of FY 2025-26 underway , businesses must now actively focus on tax planning, profitability review, and compliance readiness . Unlike earlier years, partner remuneration and interest on capital can no longer be treated as last-minute withdrawals due to the introduction of TDS under Section 194T . This change shifts partnership taxation toward a disciplined, real-time compliance framework . Why Q4 Planning Has Become Critical From 1 April 2025 , any remuneration, bonus, commission, or interest paid to partners attracts TDS at 10% once the annual threshold of ₹20,000 per partner is crossed. TDS must be deducted at the time of credit or payment, whichever is earlier . Therefore, delaying remuneration decisions to March-end may now lead to interest, late fees, and compliance pressure . Reference: Section 194T, Income-tax Act 1961 (inserted by Fi...

**UAE Resident Investing in Indian Mutual Funds: Why DTAA & TRC Still Matter Even When Tax Is Paid in India** Facts of the Case An individual tax resident of the United Arab Emirates has invested in mutual funds in India. On redemption of these mutual fund units, capital gains arise in India. Since the UAE does not levy personal income tax, a recurring and practical question arises:  If the assessee is anyway taxed in India at Indian rates, what is the purpose of invoking the India–UAE DTAA and submitting a Tax Residency Certificate (TRC)? This question has gained renewed attention due to recent articles and discussions suggesting that capital gains on Indian mutual funds may be fully exempt under the India–UAE DTAA. Question Raised by the Assessee “ UAE has no tax. I am paying tax in India anyway. Why submit TRC? And some articles even claim that mutual fund gains are not taxable in India at all under the DTAA. Which position...

  History of Income Tax in India & Why the Income-tax Act, 2025 Became a Necessity Income tax in India was first introduced in 1860 by Sir James Wilson to compensate for losses after the 1857 revolt. Post-Independence, multiple fragmented tax laws existed, leading to the enactment of the Income-tax Act, 1961 , which governed India’s direct tax system for over six decades . Over time, frequent amendments, explanations, provisos, and judicial interpretations made the Act lengthy, complex, and litigation-heavy . The law, originally drafted for a manual economy, struggled to align with today’s faceless, digital, and data-driven tax ecosystem . This made the Income-tax Act, 2025 a structural necessity rather than a policy choice. Why the Income-tax Act, 2025 Was Required The objective is simplification and certainty , not increased taxation. The Government recognised the need for a law that is: Easy to read Easy to interpret Easy to comply with while retaining th...

  💼 Beyond Returns: What a CA Really Brings to the Table By CA Sukannya  “CA madam, you only look after taxes, right?”  I smile every time someone says that. Because it reminds me how most people still see Chartered Accountants as those serious faces behind piles of files, crunching numbers, and filing returns before deadlines. But the truth is — we do much more than that. 🌱 A Small Story A few months ago, one of my MSME clients — a manufacturing entrepreneur — told me, “Ma’am, I never realised finance could be so clear. Earlier, I only met my CA at year-end. Now I actually understand what my profits mean!” That one line summed up what I believe in. A CA’s real job isn’t just to compute tax; it’s to help you see your business in numbers that make sense. 🧩 The Many Hats a CA Wears We don’t just handle compliance — we build clarity. Role What We Actually Do Why It Matters Guide Decode balance sheets, explain what’s really driving profits. Entrepreneurs mak...

  Navratri 2025: When the CA’s Calendar Meets the Goddess’s Calendar Navratri 2025 – Balancing Festivities and Deadlines as a Woman Chartered Accountant Navratri is not just a festival—it’s nine days of devotion, colour, music, and togetherness. For many working women, especially professionals like Chartered Accountants, Navratri also becomes a test of balance: between tradition and work, rituals and reports, family and clients. The September 2025 Context This year, Navratri falls in September—a crucial month for Chartered Accountants in India. With Income Tax Return filing, tax audit season, and ROC compliance in full swing, it is the busiest period in a CA’s calendar. Add to it the nine days of fasting, garba nights, and cultural rituals, and you have the perfect recipe for a dual marathon—professional and personal. The CA’s Dilemma As a woman CA, mornings often start with prayers, traditional attire, and sometimes managing fasting. Yet, by 10 am, it is all about client call...

  🚨 GST Rate Change Effective 22nd September 2025 – What Businesses Must Know 🚨 The Government has notified revised GST rates effective 22nd Sept 2025 , following the 56th GST Council Meeting . While the changes bring relief for some sectors, they also create compliance challenges for businesses. Here’s a one-stop guide to help you navigate the transition smoothly 👇 🔑 Key Highlights from the Notification 📌 2.5% GST – Essential food & agri-based items (milk, cereals, pulses, nuts). 📌 9% GST – Certain intermediate/industrial inputs. 📌 20% GST – Specific luxury goods. 📌 1.5% GST – Selected niche commodities. 📌 0.125% GST – Precious metals/jewellery related items. 📌 0.75% GST – Specific agricultural/allied goods. 📌 14% GST – Notified high-value goods/services Rate Notification . 📖 ITC Implications – Section 18(4), Rule 44 1️⃣ Rate Reduction (Taxable → Lower Rate) ✔ No ITC reversal required. ITC remains in credit ledger. ❌ Refund o...