Related stipend
This query is : Resolved
28 March 2016
what should artical do if ca given chq. for stipdnd but take return 50% of that amt in cash from artical
28 March 2016
Hi, You may complain the same to ICAI. But you will not have evidence for the same. Best strategy is if you have not completed 1st year of articles, you may opt for transfer to other firms.
21 July 2025
Whoa, that’s a tricky situation!
If a CA issues a cheque for the full stipend amount to the articled assistant but then takes back 50% of it in cash, that’s essentially underreporting stipend payments and could be considered tax evasion or fraudulent practice.
What should the articled assistant do?
Stay Transparent:
The articled assistant should maintain records of the full stipend amount they’re officially supposed to receive (the cheque amount).
Avoid Cash Returns:
It’s best to refuse giving back any amount in cash, as this is not legal or ethical. All stipend payments should be genuine and documented.
Seek Clarification:
If pressured, the assistant can seek advice from their institute or a trusted senior CA on how to handle such demands.
Report if Necessary:
If the CA insists on such irregular payments, the articled assistant can consider reporting it to ICAI or appropriate authorities to protect themselves.
Why is this a problem?
The company/CA could be avoiding tax deductions or misreporting income.
The articled assistant’s income documentation will not reflect the actual stipend, causing problems in future (loans, proofs, or tax filing).
It’s illegal to create such “cash-back” arrangements.
If a CA issues a cheque for the full stipend amount to the articled assistant but then takes back 50% of it in cash, that’s essentially underreporting stipend payments and could be considered tax evasion or fraudulent practice.
What should the articled assistant do?
Stay Transparent:
The articled assistant should maintain records of the full stipend amount they’re officially supposed to receive (the cheque amount).
Avoid Cash Returns:
It’s best to refuse giving back any amount in cash, as this is not legal or ethical. All stipend payments should be genuine and documented.
Seek Clarification:
If pressured, the assistant can seek advice from their institute or a trusted senior CA on how to handle such demands.
Report if Necessary:
If the CA insists on such irregular payments, the articled assistant can consider reporting it to ICAI or appropriate authorities to protect themselves.
Why is this a problem?
The company/CA could be avoiding tax deductions or misreporting income.
The articled assistant’s income documentation will not reflect the actual stipend, causing problems in future (loans, proofs, or tax filing).
It’s illegal to create such “cash-back” arrangements.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Regarding Appointment of auditor in case of casual vacancy
- GST- DRC 03 RCM Liability
- Query on managerial remuneration u/s 197 of CA 2013
- Conversion of Proprietorship Firm to Partnership Firm
- Updated return filing
- Validity of form 15 G and 15 H on Interest on fixed deposit
- Supply to unit situated in SEZ
- Temporary GST registration
- TDS AFTER SUBMISSION OF 15G OR H
- Additional income for updated return
- GSTR 1- Amend Credit Note
- Audit of F and O T/O
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
CAclubindia
