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.
Not a tax lawyer but can give you practical advice:
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.
You should quote and then send the invoice post client accepting the quote. Which tier 1 law firm are you from which issues an invoice to the client without accepting the query, giving timelines and sending quotes?
I have a doubt how it really plays in action and would be grateful if someone can explain it with example.
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 ?
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.
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.
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 ?