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
CA ANU RADHA
(Expert)
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.
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