How to Become a Tax Lawyer in India: [Complete Guide]

How to Become a Tax Lawyer in India: [Complete Guide]

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Kritika
Kritika Rai
Senior Executive Content
Updated on Sep 18, 2024 12:52 IST

Interested in financial affairs and want to become a Tax Lawyer? If yes, check out the complete career guide to become a Tax Lawyer in India in this article.

Steps to Become a Tax Lawyer

Steps to Become a Tax Lawyer

Taxation is a field governed by complex rules and regulations, which can be overwhelming for the average person to understand. This is where tax lawyers step in, providing essential guidance to both individuals and corporations. They help navigate the intricacies of the Indian tax system and develop strategies for managing financial resources effectively.

The nature of India’s tax landscape is very dynamic because new tax laws and rules are consistently implemented in the country. Therefore, it is challenging for most individuals and organisations to stay up-to-date with every tax rule and regulation. As a result, they turn to expert tax lawyers for advice, driving a growing demand for professional tax services. This increase in demand is creating numerous job opportunities in the field of tax law. If you are looking to take advantage of these opportunities, becoming a tax lawyer could be the right path for you. 

This article serves as a comprehensive career guide to help you achieve that goal. It outlines the steps to becoming a tax lawyer in India, so stay with us as we explore this journey together.

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Who is a Tax Lawyer?

Before understand how to become a tax lawyer, we first need to understand what a tax lawyer does. 

A tax lawyer is a legal professional who has specialised knowledge of tax-related rules and regulations in India and concrened tax aspects and laws of international business. Tax lawyers are experts in interpreting and applying tax regulations to help individuals, businesses, and organisations comply with tax laws while minimising their tax liabilities. Their roles and resposibilities can be varied according to requirements of clients for which they work. However, there are some common responsibilities that all of them must fulfill. 

Roles and Responsibilities of a Tax Lawyer

The common roles and responsibilities of a tax lawyer are listed below:

1. Advising Clients on Tax Laws

A tax lawyer provides legal advice on various tax matters, including corporate tax, international tax, income tax, and capital gains tax. They help clients understand complex tax laws and regulations.

2. Tax Planning

Tax lawyers develop strategies for individuals and businesses to minimize their tax liabilities while ensuring compliance with tax laws. This includes structuring transactions, investments, and operations to achieve tax efficiency.

3. Representing Clients in Disputes

When clients face disputes with tax authorities, tax lawyers represent them in court or during negotiations with the IRS or other tax authorities. They handle tax audits, investigations, and appeals.

4. Drafting Legal Documents

Tax lawyers draft and review contracts, legal agreements, and tax-related documents to ensure they comply with applicable tax laws and avoid potential tax liabilities.

5. Handling Corporate Tax Issues

For businesses, tax lawyers work on matters such as mergers and acquisitions, restructuring, international taxation, and compliance with corporate tax laws.

6. Estate Planning

Tax lawyers assist individuals in estate planning, ensuring the transfer of assets complies with tax laws and minimizes estate and inheritance taxes.

7. Staying Updated on Tax Law Changes

Tax laws are constantly evolving. Tax lawyers must stay informed about changes in legislation and case law to provide up-to-date advice to clients.

8. Advising on Tax Penalties and Mitigation

Tax lawyers guide clients on potential penalties for non-compliance and work to mitigate those penalties through negotiation or other legal strategies.

9. Providing Legal Support in Tax Litigation

In cases of tax fraud, evasion, or other serious legal matters, tax lawyers defend their clients in criminal or civil litigation related to tax violations.

10. Ensuring Compliance with International Tax Laws

For multinational clients, tax lawyers help navigate international tax regulations, ensuring compliance with foreign tax laws and treaties. 

Moreover, Indian tax lawyers must have in-depth knowledge of the following tax fields to succeed in their profession: 

Tax Law Subject Areas
  • Income Tax
  • Corporate Tax
  • Goods and Services Tax (GST)
  • Customs Duty
  • Excise Duty
  • Capital Gains Tax
  • Professional Tax
  • Securities Transaction Tax (STT)
  • Dividend Distribution Tax (DDT)
  • International Tax
  • Estate and Gift Tax
  • Tax Act Professional
  • Income Tax Lawyer

How to Become a Tax Lawyer in India: Complete Guide

To become a tax lawyer in India, individuals must earn a law degree, obtain a Certificate of Practice (COP), and acquire a thorough understanding of the country’s tax system. The mentioned process of becoming a certified tax lawyer is outlined in the comprehensive steps below: 

1. Earn an LLB Degree

The first and most important step to becoming a lawyer in any specialisation is to earn a law degree, either a 3-year LLB or a 5-year integrated LLB. To become a tax lawyer, you also need to obtain one of these two law degrees. To apply for the 3-year LLB, you must first complete your graduation in any stream from a recognized college or university. 

You can get admission to a 5-year integrated LLB course after completing Class 12 from a recognised state or central education board. The minimum percentage required for admission to a 5-year LLB program is generally 45%. However, this criterion is not applicable to all law colleges in the country. 

A 5-year LLB is an integrated undergraduate course in which law is taught in combination with another subject from the science, arts, commerce, or engineering streams. The most common types of 5-year LLB courses are as follows: 

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2. Appear in AIBE 

After completing your LLB degree, you must demonstrate your competence as a tax attorney or lawyer. To do this, you will need a Certificate of Practice (COP), an official document required to practice law in India. To obtain the COP, you must appear for the All India Bar Examination (AIBE), which is conducted once a year. Law graduates are eligible to apply for the AIBE. 

After passing the AIBE, you will be certified as a lawyer, granting you legal permission to work as a junior advocate under senior advocates or establish your own law firm. However, the journey to becoming a tax lawyer does not end here. You will need specialised knowledge in tax law. The following steps can guide you further in this process.

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3. Obtain an LLM Degree in Tax Law

A postgraduate degree in law helps students develop expertise in a specific legal area. Pursuing an LLM in Tax Law serves the purpose of gaining specialised knowledge in tax law. Therefore, completing an LLM in Tax Law can be highly beneficial for aspiring tax lawyers to enhance their knowledge.

This step is optional for those who choose to start working for tax law firms after clearing the AIBE, as on-the-job experience can provide them with the practical knowledge needed to work effectively in the legal field.

4. Build Professional CV

Once you have completed your education in tax law, the next step is to build a professional Curriculum Vitae (CV) and start applying for job positions at prestigious tax law firms.

You can research online to learn how to create an appealing CV tailored for tax lawyers. Additionally, seeking advice from those already working in the field can be helpful in crafting an effective CV.

5. Apply for Internship/Jobs

In this step, you need to search for tax lawyer positions on trustworthy job portals in India, such as Naukri.com, LinkedIn, and Indeed. Additionally, if you have a friend or relative working as a tax lawyer, you can ask for job referrals from them.

6. Reflect and Improve

As the tax law field in India is continuously evolving, it is essential to stay updated with changes in the country’s tax rules and regulations.

Consistently revisit the cases you handle to identify areas for improvement in your approach. Take note of what went well and what could have been done better in your professional journey. This practice will help you grow as a professional and stay relevant, even as the job market and the legal and political landscape change in the country.

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About the Author
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Kritika Rai
Senior Executive Content

Kritika Rai is an accomplished content writer and researcher with over five years of experience, currently thriving at Shiksha.com and working for Law and Animation Domains. She has a proven track record of developi... Read Full Bio