What's with most of the replies on posts on this forum being shitposts of late? Looks like no real person in the industry uses LI anymore. If you don't have anything useful to say, save everyone's energy and stay shut.
Why would they? This place has now been hijacked by junior students and not even intelligent ones, who are posing as everything under the sun from aspirants and parents to law firm partners and judges. And then there are the trolls who are part of the IT Cells of course.
I think its time mods intervene, too many ret@rded posts lately. Even when there's a meaningful conversation like this one, some NLU reserved category kid will spew nonsense in the comments.
You can claim 50% of your retainer fee as expenses. If your fee is less than 75 lakh you can claim without filing balance sheet. Apart from that you can claim up to 2 lakh under 80C, 80CCD and all. Plus upto INR 60k as rent, of you pay rent, and another amount up to INR 50k on medical insurance for yourself and family members.
Suppose, I have an income of 20LPA and claim 50% as expenses. However, my bank balance stays more than 10 lakhs at the end of the year. Will that cause a problem?
s.44ADA says it will be deemed that the expenses have been for your profession and you need not maintain invoices for that -- it doesn't say it will be deemed that you have incurred the expenses. You need to have spent, the legal fiction comes in to assume that such expenses are legit.
You are not taxed under the salary head of income tax, therefore slab rates are not applicable. We are taxed under the Profits and Gains from Business and Profession (PGBP) head and have a 50% presumptive taxation deduction
s.44ADA says it will be deemed that the expenses have been for your profession and you need not maintain invoices for that -- it doesn't say it will be deemed that you have incurred the expenses. You need to have spent, the legal fiction comes in to assume that such expenses are legit.