The applicable Income Tax Return (ITR) form for a lawyer depends on the nature of their income, the type of legal practice they can engag in, and their sources of income.
Generally, a lawyer would likely need to file their return using the ITR-3 or ITR-4 form.
1. ITR-3 Form:
This form can use by individuals and Hindu Undivided Families (HUFs) who have income from a profession or business, including legal practice.
If a lawyer’s income is generated through their law practice, they would typically use this form.
It’s important to provide accurate details of their earnings, expenses, and deductions related to their legal profession.
2. ITR-4 Form:
Lawyers who are engaged in a small-scale legal practice and opt for the presumptive taxation scheme under Section 44ADA of the Income Tax Act can use the ITR-4 form.
This scheme allows them to declare 50% of their gross receipts as their income, without the need for detailed expense calculations.
However, the actual income should be higher than the deemed 50% for this option to be beneficial.
3. Consult a Tax Professional:
It’s crucial for lawyers to consult with a tax professional or accountant who can analyze their specific income sources, deductions, and legal practice setup to determine the most suitable ITR form.
Filing the correct form ensures compliance with tax regulations and minimizes the risk of discrepancies or audit-related issues.
The applicable ITR form for a lawyer hinges on the nature and scale of their legal practice. Consulting with a tax expert is advisable to ensure accurate filing and compliance with tax laws.
To visit: https://www.mca.gov.in/
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