There are a few areas of practicing law that can be easily managed and completed. However, when it comes to matters related to tax, the approach is going to vary. The tax laws are difficult to comprehend and practice and believe it or not, they scares the wits out of most lawyers. You have to master the art of interpretation to study tax law and need to have a good amount of knowledge at your fingertips. Apart from this, you must have adequate patience to pour over the financial documents and understand them clearly. Finally, you must have the potential to understand the complexity of the tax structures and defend the case of your clients in the court. While the things you need to know as a tax lawyer are enough to demonstrate why they usually earn more than the rest of the professionals, there are a few other reasons as well that make the tax lawyers in India richer than others.
Only practicing area
There is a host of legal practitioners with general expertise and take any assignment or case they get whether it is to draft contracts, dealing with the matters of NCLT or APTEL, but the best tax lawyers in India cannot accept any other case except those that relate to their field. Tax law needs specialization and even then, some of the matters they deal with are customs, transfer pricing or GST. So practicing tax law is entirely different and this is another reason for the few good legal professionals in this field to ask for more fees.
Niche lawyers make more money
Just like the language interpreters earning more in case of rare languages, a law firm in India specializing in tax tends to earn more than those dealing with general topics. It has been observed that when you focus on the niche, you become a better performer especially in the area of law as it boosts your productivity, efficiency, and the depth of knowledge. It also leads to better branding resulting in further increase in the revenue.
When it comes to the tax cases, there is huge amount of money involved, and the amount can add up to become more although a lot depends on the nature of the client. In matters related to tax fraud, the accused person may have to go to jail. The party that loses may go for another appeal, but depositing a partial amount of tax is necessary for it to be heard in the court. So, losing a tax case can bring a great deal of trouble and is reason enough for people to look for the best legal professionals to deal with the case. If you look at some of the cases related to the tax issues of some of the greatest personalities of India, you will easily understand how the complexity of the cases make it a challenging task for the top lawyers in India dealing with tax and they ask for huge fees.
Change of laws
When it comes to direct and indirect tax law, they change frequently, and so what you know today may not be valid tomorrow. Especially, in a country like India, the laws related to taxation are implemented quickly and there is no dearth of disputes as well when the government leaves no stone unturned for application of tricks and tactics to collect as much tax as possible. Due to the frequently changing tax laws, the lawyers must have exclusive knowledge for discovering the grey areas that often lead to complexity and confusion.
When compared with the other fields of law, the taxation issues can be challenged on the grounds of competition. Furthermore, the changes in the tax law provisions also require the lawyers to look forward to the constitutional challenges. There are several other challenges with which these law practitioners may have to deal thereby making it necessary for them to delve deep into the cases. For corporate tax due diligence, the lawyers have to work harder to protect their clients and hence ask for more money as their fees.
With the growing opportunities of international trade, the tax lawyers can go for international practices, and there are several aspects of tax laws involving the international entities. If you want to become a tax lawyer, you have to look beyond the usual curriculum and explore to understand how you can earn more.