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**UAE Resident Investing in Indian Mutual Funds: Why DTAA & TRC Still Matter Even When Tax Is Paid in India**

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**UAE Resident Investing in Indian Mutual Funds:  DTAA, TRC, and the Debate Between “Pay Tax” vs “No Tax”** 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 is correct?” Answer by the Tax Expert You have spotted...
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History of Income Tax in India & Why the Income-tax Act, 2025 Became a Necessity

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  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...
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Beyond Tax Return Filings : What a CA Really Brings to the Table !

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  💼 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...
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Navratri 2025: When the CA’s Calendar Meets the Goddess’s Calendar

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  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...
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🚨 GST Rate Change Effective 22nd September 2025 – What Businesses Must Know 🚨

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  🚨 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...
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The Harsh 180-Day ITC Reversal Rule Under GST — A Compliance Nightmare for Businesses

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  The Harsh 180-Day ITC Reversal Rule Under GST — A Compliance Nightmare for Businesses One of the most controversial provisions under the Goods and Services Tax (GST) regime is Section 16(2) of the CGST Act, 2017 read with Rule 37 of the CGST Rules, 2017 , which mandates reversal of input tax credit if payment to the supplier is not made within 180 days from the date of invoice. 📜 The Legal Provision Under Section 16(2) , a registered person is entitled to claim ITC only if: They possess a valid tax invoice or prescribed document, They have received the goods or services, The tax charged has been actually paid to the government, and They have paid the supplier the value of supply along with the tax within 180 days from the date of invoice. If this 180-day payment condition is not met: The ITC already claimed must be added back to the output tax liability in the month immediately following the expiry of 180 days, with applicable interest . Once payment...
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E‑Invoicing: Mandatory for GST Input Tax Credit – How to Verify Your Supplier’s IRN Registration

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E‑Invoicing: Mandatory for GST Input Tax Credit –  How to Verify Your Supplier’s IRN Registration Introduction E‑invoicing under GST mandates real‑time validation of B2B and export invoices via the Invoice Registration Portal (IRP). Without a valid Invoice Reference Number (IRN), an invoice is not recognized for Input Tax Credit (ITC) claim.  Legal Framework Rule 48(4) of the CGST Rules requires notified taxpayers to upload invoice data in FORM GST INV‑01 to obtain an IRN and QR code. Failure to comply invalidates the invoice for ITC purposes.  Section 16(2)(a) of the CGST Act further mandates possession of a valid tax invoice by a registered supplier for ITC eligibility. Applicability Timeline Phase Effective Date Aggregate Turnover Threshold I 01 Oct 2020 > ₹ 500 Cr II 01 Jan 2021 > ₹ 100 Cr III 01 Apr 2021 > ₹ 50 Cr IV 01 Apr 2022 > ₹ 20 Cr V 01 Oct 2022 > ₹ 10 Cr Why E‑Invoicing Is Mandatory for ITC Only invoices with IRN‑embedded QR codes are re...
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