We want LI to be one of the friendliest places on the internet, where lawyers and law students help each other with their career related queries and occasionally discuss other stuff that might affect their lives too. In other words:
1. Be kind, respectful and helpful to each other.
2. Be bona fide, truthful, genuine and curious.
3. Assume the best intention of others.
Therefore, in using the site, you must agree to do your best to uphold these community guidelines.
Note that what you find here is written and moderated by anonymous people on the internet.
Therefore everything you read here is very likely unverified, rumour, speculation and/or downright false.
In continuing to read anything here, you must therefore agree not to take anything you read here as factual and that you will exercise due caution, diligence and common sense before acting on any information you may come across here.
You also agree to report any inaccurate or malicious comments with the buttons. Moderators take action within 24 hours, as required and appropriate under law.
Our full terms and conditions apply too.
Do you solemnly agree to all of the above?
I have gone through a previous thread on the same topic but I have doubts wrt to Sec. 44 ADA. Is there anyone who has been been claiming 50% as expenses even if their actual expenses are less ?
When I was an A0-~A4, my gross receipts were low enough, and my CA used to prepare my ITR for like 4k and I used to get a refund from the TDS I would have paid. Not sure how my CA handled deductions though.
At some point, my gross receipts were high enough (i.e. my retainer plus bonus), so my option was to accept 50% of gross receipt as income and pay tax on it (i.e. TDS plus difference) or get my returns audited by my CA in which case he could show expenses related the profession as deductions. This service was significantly more expensive (~11k to my CA) but a net positive for me since my expenses were large enough to offset my receipts and still get a refund from the TDS paid.
Can you give some indication of range of the total annual earning (I.e. retainer plus bonus) and some heads under which major amounts of expenses are claimed? I think it's very creative accounting to keep tax rate below 10% once the earnings are above 25 lacs and would like to know more.