Unit –V

ACCOUNTANCY FOR LAWYERS

PURPOSE OF MAINTAINING ACCOUNTS BY LAWYERS

A business enterprise must keep a systematic record of its daily transaction. It is a legal duty. It helps
to know where its stand and adjudge its performance. This systematic recording of transactions is
known as accounting. Since legal profession is a trade, lawyers are under duty to maintain
systematic accounts relating to the profession.

The basic purpose of accounting is to present a complete financial picture of the Advocates
profession. This can be done with the help of two financial statements like

(i) Profit and loss account and

(ii) Balance sheet showing the assests and liabilities.

It is necessary to maintain proper accounts to calculate the following

(i) Annual Income

(ii) Income Tax
(iii) Professional Tax
(iv) Amount due to the client or amount due by the client.

1. To calculate the annual income: To calculate the annual income of the Advocate from the legal
profession, it is necessary to maintain proper accounts of his income from the profession.
Maintaining this account is useful for Advocates also. By knowing his Annual Income , he can take
steps to improve his profession.

2. To calculate income Tax: Advocates are liable to Pay Income tax for the income derived from the
profession. In order to calculate the amount payable as income tax, he has to maintain proper
accounts relating to his income and expenditure. To calculate the taxable income he is entitled to
deduct certain expenditure like rent, salary, telephone bill and other administrative expenditure. For
this purpose also he has to maintain proper accounts.

3. To calculate professional tax: Every six months the advocates are liable to pay professional tax to
the Government. The amount of professional tax varies depending on the income. In order to
calculate the amount of professional tax he has to maintain the proper accounts.
4. To Ascertain the amount due from the client or due to the client: The account relating to the
amount received from the client and the amount received on behalf of the client from others or
from the court should be properly maintained. Then only the amount due from the client can be
calculated. This will help not only the client but also the Advocate.

PLACE OF KEEPING THE ACCOUNTS BOOKS.

The accounts books and documents relating to the accounts should be kept and maintained by the
advocate,

(i) At his office.

(ii) Where he is carrying on the profession more than one office, then at his head office. But accounts
can also be maintained separately for each branch at the respective branch office.

Penalty for not keeping Account Books: A Lawyer who is legally liable to maintain account books,
fails to maintain it or fails to retain it for the prescribed period (cash book and ledger-16 years, other
books-8 years) is liable to pay penalty ranging from Rs.2000/- to 1,00,000/- (S.271 A ).

Bar council Rules relating to accounting

Accounting is an art of recording, classifying and summarizing in a significant manner the event
which are financial in character and interpreting the result there of . An Advocate is under a duty to
maintain proper accounts of money received from his client and the amount received on behalf of
client from others or from the court. The rules relating to such accounting is dealt in rules 25 to 32 of
the Bar Council Of India Rules 1975.

Rule 25: An advocate should keep the accounts of the client’s money entrusted to him. The accounts
should show the amounts received from the client, the expenses incurred for him and the debits
made on the account of Advocate fees with the respective dates and all other necessary particulars.

Rule 26: Where moneys are received from the client, it should be entered whether the amount have
been received for the advocates fees or expenses. Amount received for the expenses shall not be
diverted towards Advocates fees without the consent of the client in writing.

Rule 27: Where any amount is received on behalf of his client the fact of such receipt must be
intimated to the client as early as possible.
Rule 28: After the completion of the proceeding, the advocate shall be at the liberty to take the
settled fee due to hi to the unspent money in his hand.

Rule 29: Where the fee has been left unsettled, the advocate shall take the fees which he is legally
entitled from the moneys of the client remaining in his hands, after the completion of the
proceeding. The balance shall be returned to the client.

Rule 30: A copy of the client account shall be furnished to him after getting the necessary copying
charges from him.

Rule 31: An advocate shall not make any agreements whereby client’s funds in his hands are
converted into loans to the advocate.

Rule 32: An Advocate shall not lend money to his client for the purpose of conducting the case.

Rules Relating to Accounting under Income Tax Act.

Under the Income Tax Act, every lawyer is required to maintain the following books of accounts and
other documents to enable the Assessing Officer to calculate his total income

(i) cash book

(ii) Receipt Voucher
(iii) payment voucher
(iv) journal
(v) ledger

The accounting year is 1st April to 31st March next year.

1. Cash book: It is the book in which the amount received by the Advocates from the clients and
others and the amount spent for the clients are written. This book is useful for the Advocate to know
the amount in his hand on each day.

2. Receipt Voucher: It is the document prepared for recording the receipt of money by cash or
cheque. When an Advocate received money from the client, the Advocate has to issue a receipt to
the client. Advocate shall maintain receipt books with serially numbered receipt forms in duplicate.
The original receipt should be given to the client and the duplicate shall be retained by the Advocate.

3. Payment Voucher: Payment vouchers are used to record such payments for which receipts are
not obtainable from the person to whom such payments are made. For example bus fare, auto fare,
court fees, stamps, refreshment expenses etc. In such cases the Advocate signature in the payment
voucher and the signature of the person to whom payment is made may be obtained.

4. Journal: Journal is the book of first entry or original entry. In the journal the transactions are
recorded in the order of their occurrence. It should contain the following details

(i) Date of Transactions

(ii) Account to which the transaction relates

(iii) Amount to be debited,

(iv) Amount to be credited

(v) Explanation of the transaction.

5. Ledger: The transactions recorded in the journal are to be posted to the separate heads of
account in other book called as Ledger. In the ledger different pages are allotted to the different
heads of accounts. When the journal entries are posted to the concerned heads of account in the
ledger, the page number of the ledger should be noted in the journal for easy reference.

The ledger account of an advocate shall contain the following heads.

Clients Account: For each and every client separate pages shall be allotted in this ledger and
separate account shall be maintained for them.

(i) Fees Account: In this account the fees received from each and every client shall be entered
separately. From this account the total amount of fees received from all the clients in a financial year
can be ascertained.

(ii) Rent Account.

(iii) Salary Account.

(iv) Library Account.

(v) Printing and Stationary Account.

(vi) Postage and Telegram Account.

(vii) Electricity Charges.

(viii) Conveyance Charges.

(ix) Repair and Maintenance.

(x) Office Miscellaneous Expenses Account.

At the beginning of the ledger book the index may be given with the name of the different heads of
account and their respective pages for easy reference.

******

Accountancy :

Accounting is a process of identifying, recording, classifying, summarizing, analyzing

the business transaction and interpreting the result thereoff.

Need :

1. Serves as record.
2. To know the financial status.
3. To take decision.
4. To calculate the results.
5. To pay the taxes under the 145 of the income tax act 1961.
6. To know the dues and balances.
7. To gain excellent control over assets, expences, barrowings.
8. Recommended under the act.
 Indian stamp act 1899
 The registration act 1908
 Court fee and suit valuation act.
 Advocate fee rules.

Bookkeeping :

 in the context of a business is simply the recording of financial transactions.

Transactions include purchases, sales, receipts and payments by an individual or
organization.
 Accounting process includes the bookkeeping function, but is just one part of the
accounting process.
 There are some common methods of bookkeeping such as the single-entry
bookkeeping system and the double-entry bookkeeping system.
  IMPORTANCE :

1. Limitation of human memory.

2. Owners and managers being different persons.
3. Preparation of financial statements.
4. Need for financial information.
5. Need of taxation authorities.
6. To know the assets and liabilities.
7. Helps to Planning and Decision making.
8. To improve the position of the business.

Elementary aspects of bookkeeping :

There are some common methods of bookkeeping such as

1.  SINGLE-ENTRY BOOKKEEPING SYSTEM

2.  DOUBLE-ENTRY BOOKKEEPING SYSTEM.

Meaning of Single Entry Book Keeping System :

Under single entry book keeping system, only one aspect of a transaction is

recorded, so it is known as incomplete system of recording transactions. Under it only
records of cash and personal accounts are maintained. In it, accounts relating to debtors ,
creditors and cash are prepared. It ignores all impersonal account like salaries, wages,
sales, purchases,etc. It maintains a cash book and personal accounts but does not record
nominal and real accounts. It is not a reliable system but it is still used by small organizations
to keep the records of transactions.

Features of Single Entry Book Keeping System :

1. It maintains only accounts relating to person but it ignores the real and nominal accounts.
2. It prepares the cash book but both personal and business cash transactions are recorded
in the same book.
3. It is suitable to small traders having lesser numbers having lesser number of transactions.
4. It lacks the specific rules of maintaining books of accounts as a result there is no
uniformity in accounts of
different firms.
5. Trial balance cannot be prepared under this system.
6. The profit or loss calculated under this system is only a guess.

Meaning of double entry book keeping system :

Double entry book keeping system is a modern and scientific system of recording the
financial transactions. It follows the principle that there are two aspects of each business
transaction. Both of these aspects i.e., one debit and another credit must be recorded in this
system of book keeping. The golden rule for it is that every debit must have a corresponding
credit of same amount.In other words, there are two parties in every transaction, one is giver
and another is receiver. Generally, the account of receiver is debited and the account
of giver is credited.

Features of double entry book keeping system :

1. Double Effect- In it, every transaction has two fold effects i.e., debit and credit.
2.The double aspects of a transaction are recorded in opposite side of two
different accounts.
3. Equal effect- The amount of debit and credit aspects must be equal in terms of monetary
value. The same amount of a transaction is shown in two books on opposite sides.
4. Classification of accounts- Under it, accounts are classified into three categories as
personal account, real account and nominal account.
5. Checking of Mathematical Accuracy- Since the amount is recorded on the debit and credit
side of two separated books, the total amount is always equal to the credit.

6.It helps to find the arithmetical accuracy of accounting records by preparing a trial balance.

Books to be maintained by advocates :

1. Journal entry :

 Journal :

The word journal is derived from a French word ‘jour’ which means a daily,

day book or log book. In this book, transactions are recorded in a

chronological order i.e. in order of dates, as and when they take place. 

 Importance & Advantages of Journal

a. It provides a date wise record of all business transactions in a methodical

order. So, there’s less chance to leave the transaction unentered.
 b. The use of journal ensures the observation of Double Entry system in the
recording of transactions.

c. The transactions recorded in the journals with details of the account debited
and credited and the amount of each transaction.

d. From journal adequate explanation of each entry may be obtained as every

entry in journal is supported by the narration relating to that transaction.

e. The use of journal simplifies ledger as details regarding the business

transaction and are not required to be noted down in the ledger.

f. From legal point of view, journal is more reliable evidence of business

transactions than the ledger.

Format Of Journal Entry System And Its Ingredients :

* Ledger Folio: This column is meant to record the reference of the main Book*

1) Date 2) Particulars Ledger 3) Dr. 4) Cr.

Folio Amount Amount
Rs. Rs.
21.3.2006 Salary A/C Dr. 1,000 1,000
To Cash A/C 6)
JOURNALISING
(For salary is paid in
Cash)

5) NARATION

2. Ledger :

a) ledger is a book of final entry.

b) posting in the ledger is made periodically.

c) The ledger information about a particular account is found at one place only.

d) Recording of transactions in the journal is called journalising and recording of

transactions in the ledger is called posting.

 e) A journal entry shows both the aspects debit as well as credit but each entry in

the ledger shows only one aspect.

f) Journal constitutes basic record for ledger entries.

Karthik’s Capital A/c

Dr. Cr.

Date Particulars LF Amount Date Particulars LF Amount

1998 To Balance 20,000 1998 By Cash A/c 20,000
June July 1
30 c/d
20,000 20,000
By Balance
July 1
b/d 20,000

3. Cash book:

a. Cash Book is a sub-division of Journal.

b. Recording transactions pertaining to cash receipts and payments.

c. Firstly, all cash transactions are recorded in the Cash Book wherefrom they

are posted subsequently to the respective ledger accounts.

d. All cash receipts are recorded on the debit side and all cash payments are

recorded on the credit side.

e. All cash transactions are recorded chronologically in the Cash Book.

f. The Cash Book will always show a debit balance since payments cannot

exceed the receipts at any time.

g. Kinds of Cash Book

Depending upon the nature of business and the type of cash transactions,

various types of Cash books are used. They are:

a) Single Column Cash Book

b) Two Column Cash Book or Cash Book with cash and discount columns.

c) Three Columnar Cash Book or Cash Book with cash, bank and discount
 columns.

d) ‘Bank’ Cash Book or Cash Book with bank and discount columns.

e) Petty Cash Book.

a) Single or Simple Column Cash Book :

 This is the simplest form of Cash Book

 Is used when payments and receipts are mostly in the form of cash and

where usually no cash discount is allowed or received.

 . The ruling of Single Column Cash Book is as follows:

Single Column Cash Book

Dr. Cr.

Date Particular R.No . L.F Rs. Date Particulars V.No. . L.F Rs.
s

b) Two Column Cash Book :

 Or Cash Book with Cash and Discount Columns.

 This type of Cash Book is used when cash transactions involving

discount allowed or received are affected.

 The ruling of Single Column Cash Book is as follows:

Two Column Cash Book

Dr. Cr.

Dat Particula R.N . Discou Rs Dat Particula V.N . Discou Rs

e rs o L. nt . e rs o. L. nt .
F allowe F receive
d d

c) Three Columnar Cash Book:

 Or Cash Book with Cash, Bank and Discount Columns.

  Instead of maintaining the bank account in the ledger, it is

found more convenient if it is included in the Cash Book as

Cash Column.

Three Column Cash Book

Dr. Cr.

Dat Particu R. . Discou Cas Ban Da Particu V. . Discou Cas Ban

e lar N L nt h k te lar No L nt h k
o . allowed Rs. Rs. . . receiv Rs. Rs.
ed
F F

d) ‘Bank’ Cash Book :

 Cash Book with Bank and Discount Columns.

Bank Column Cash Book

Dr. Cr.

Dat Particul R.N . Discou Ban Dat Particul V.N . Discou Ban
e ars o L. nt k e ars o. L. nt k
F allowe Rs. F receiv Rs.
d ed

e) Petty Cash Book:

 The word ‘petty’ has its origin from the French word ‘petit’ which

means small.

 The petty cash book is used to record items like carriage,

cartage, entertainment expenses, office expenses, postage and

telegrams, stationery, etc.

 The person who maintains this book is called the ‘petty cahsier’.
  The petty cash book is used by many business concerns to save

the much valuable time.

 To prevent over burdening of the main cash book.

4. Final accounts :

a. Trial balance :

Trial balance is a statement prepared with the balances or total of debits and

credits of all the accounts in the ledger to test the arithmetical accuracy of the

ledger accounts.

According to M.S. Gosav “Trail balance is a statement containing the

balances of all ledger accounts, as at any given date, arranged in the form of

debit and credit columns placed side by side and prepared with the object of

checking the arithmetical accuracy of ledger postings”.

Features :

i. A trail balance is prepared as on a specified date.

ii. It contains a list of all ledger account including cash account.

iii. It may be prepared with the balances or totals of Ledger accounts.

iv. Total of the debit and credit amount columns of the trail balance must

tally.

v. It the debit and credit amounts are equal, we assume that ledger

accounts are arithmetically accurate.

vi. Tallying of trail balance is not a conclusive profit of accuracy of

accounts
 ST’s Books

Trail Balance as on……..

S.No. Name of Account L.F Debit Credit

Total Amount Total Amount
Rs. Rs.

b. Trading account :

Trading refers buying and selling of goods. Trading A/c shows the result of

buying and selling of goods. This account is prepared to find out the

difference between the Selling prices and Cost price.

Trading Account for the year ending ………..

Dr Cr

Particulars Amount Amount Particulars Amount Amount

Rs Rs Rs Rs
To Opeining Stock XXX By Sales XXX

Less: Returns XXX

To Purchase XXX Inwards XXX

Less: Returns XXX By Closing XXX

Outwards XXX Stock

To Wages XXX By Gross Loss XXX

To Freight XXX (to

To Carriage XXX be transferred

Inwards XXX to

To Clearing P&L A/c)

Charges XXX

To Packing

charges XXX

To Dock dues

To Power

To Gross Proft (to

be transferred to

P&L A/c)
XXXX XXXX

Advantages of Trading Account

1. The result of Purchases and Sales can be clearly ascertained

2. Gross Profit ratio to Sales could also be easily ascertained. It helps to

determine Price.

3. Gross Profit ratio to direct Expenses could also be easily ascertained. And so,
unnecessary expenses could be eliminated.

4. Comparison of trading account details with previous years details help to draw
better administrative policies.

c. Profit and loss account :

Trading account reveals Gross Profit or Gross Loss. Gross Profit is transferred to

credit side of Profit and Loss A/c. Gross Loss is transferred to debit side of the Profit

Loss Account. Thus Profit and Loss A/c is commenced. This Profit & Loss A/c

reveals Net Profit or Net loss at a given time of accounting year.

Profit & Loss Account for the year ended 31st March 2007

Particulars Amount Particulars Amount

To Trading A/c By Trading A/c

(Gross Loss) (Gross Profit)

To Salaries By Commission

To Rent & Taxes earned

To Stationeries By Rent received

To Postage By Interest

expenses received

To Insurance By Discounts

To Repairs received

To Trading By Net Loss

expenses (Capital A/c)

To office expenses

To Interest

To Bank charges

To Establishment

expenses

To Sunder

expenses

To Commission

To Discount

To Advertisement
 To Carriage

outwards

To Traveling

expenses

To Distribution

expenses

To Bad debt

provision

To Net Profit

(transferred to

Capital A/c)

d. Balance sheet :

1. It shows accurate financial position of a firm.

2. It is a gist of various transactions at a given period.

3. It clearly indicates, whether the firm has sufficient assents to repay its
liabilities.

4. The accuracy of final accounts is verified by this statement

5. It shows the profit or Loss arrived through Profit & Loss A/c.

The Word ‘Balance Sheet’ is defined as “a Statement which sets out the Assets
and Liabilities of a business firm and which serves to ascertain the financial
position of the same on any particular date.”

Balance Sheet of ___________As on _____________

Liabilities Amount Amount Assets Amount Amount

Sundry Creditors Cash in hand
 Bills Payable Cash at bank
Bank overdraft Bills receivable
Loans Sundry Debtors
Mortgage Closing Stock
Reserve Fund Furniture &
Outstanding exp. Fittings
Capital Investments
Add: Net Profit Plant &
(or) Machinery
Less : Net Loss Loose tools
Land & Buildings
Less Drawings Business
premises
Horses & carts

Less: Income tax Prepaid exp.

Patents & Trade
marks
Good will

Professional Tax is a Tax which is levied by the State on the Income earned by way of
profession, trade, calling or employment. This form of tax was first levied in India in the year 1949
and the power to levy Professional Tax has been given to the States by way of Clause (2) of Article
276 of the Constitution of India.

This Tax is levied based on slab rates depending on the Income of the Individual. This Tax is just like
Income Tax except for the fact that Income Tax is collected by the Central Govt and Professional Tax
is collected by the State Government. When this tax was first introduced in India, the maximum limit
on the tax to be collected was Rs. 250. However, this limit was raised from Rs. 250 to Rs. 2500 in the
year 1988.

For the past few years, State Governments have been requesting the Parliament to raise this ceiling
from Rs. 2500 to Rs. 7500. However, their request has not been accepted and the maximum amount
of Professional Tax that can be levied by any State is Rs. 2,500 only

Any amount paid as Professional Tax to the State Govt. is allowed as a deduction under Section 16 of
the Income Tax Act and Income Tax on the Balance Amount is levied as per the Income Tax Slab
Rates in force.
In case of Salaried and Wage earners, the Professional Tax is liable to be deducted by the Employer
from the Salary/Wages and the Employer is liable to deposit the same with the state government. In
case of other class of Individuals, this tax is liable to be paid by the person himself.

Professional Tax in India is collected by some state governments themselves while in several other
states which have active Panchayats, the local bodies themselves levy and this tax. Every person
liable to pay this Tax (either on his own behalf or on behalf of its employee) shall apply for
Professional Tax Registration in the prescribed form with the prescribed authority.

As the states have been empowered to levy and collect this Tax, different states levy Professional
Tax as per Different Slab Rates.

Service tax is a tax levied by the government on service providers on certain service
transactions, but is actually borne by the customers. It is categorized under Indirect Tax and
came into existence under the Finance Act, 1994.

Service tax is described in detail under Section 65B (44) of the Finance Act of
1984. This Act clearly mentions the complete list of services that fall under
the purview of service tax. It also includes the ‘Negative List’ which are non-
taxable list of services and is mentioned under Section 66D of the Finance
Act. Also, there are certain ‘Special services’ too that are exempted from
service tax.

The rate of service tax varies from time to time as the Government revises
the rates during every financial budget. Usually it is the finance ministry that
announces the change in the service tax rate during the budget session of
the parliament. The rate increased in 2015, from 12.36% to 14% and it was
revised again in 2016 from 14% to 15% that included 0.5% ‘Krishi Kalyan’
cess and 0.5% ‘Swacch Bharat’ cess.

Definition of legal service

As per Notification No.  25/2012-Service Tax, Dated – 20th June, 2012

“Legal service” means any service provided in relation to advice, consultancy or  assistance
in any branch of law, in any manner and includes representational services before any
court, tribunal or authority”

(Before 1/7/2012 representative service was exempt) Service providers:

 Individual advocate

 Partnership firm of advocate

 Arbitral tribunal.

According to notification no 25/2012 dated 20/6/12,

If an individual advocate or partnership firm of advocates provides service to
 1. Individual advocate
2. Partnership firm of advocates
3. Any person other than business entity
4. A business entity with a turnover not more than 10 lacks in preceding financial
year,
The service is exempt from levy of service tax.

Advocates Welfare Fund

The advocates welfare fund act, 2001 is mainly made for the welfare of advocates. There is a fund
created for the benefit of advocates. This is basically the combination of rules, regulations and principles
which are made for the benefit of the advocates.

This act came into force on 14th September, 2001. It is applicable to the whole of India except in those
states which already has its own state Welfare Fund Act functioning.

The act talks about how the fund is made, who makes it, to whom the act is applicable. Further how the
welfare of the advocates is done and to what extent it is applicable is also clarified in the act.

Q1. Who are included in term “advocates”?

Ans. According to section 2(a) of the act, any person whose name has been entered in the State roll
prepared and maintained by a State Bar Council and who is a member of a State Bar Association or State
Advocates’ Association can be considered an advocate under this act.

Q2. How is the advocates welfare fund constituted?

Ans. According to the Section 3 of the Act, firstly this fund is created by the government.

Then, there should be credited to the fund

1). Any amount which is 20 percent of the enrollment fees which is received by the state bar council.

2). Any other contribution of the state bar council.

3). any voluntary donation or contribution made to the Fund by the Bar Council of India, any State Bar
Association, any State Advocates’ Association or other association or institution, or any advocate or
other person.

4). any grant which may be made by the Central Government or a State Government to the Fund

5). Any amount borrowed by the state bar council

6). Amount of application fee from all the members to the fund
7). an annual subscription of Rs 50 collected from every member who is not a senior advocate and Rs.
1000 from senior advocates

8). any sums received from the Life Insurance Corporation of India or any other insurer on the death of
any member of the fund

9). any interest or dividend or other return on any investment made out of any part of the Fund

10). all sums collected by sale of stamps.

Q3. What are the duties of the state bar associations and state advocates associations?

Ans. The duties are-

 Every State Bar Association and State Advocates’ Association shall on 15th day of April of
every year, present to the State Bar Council a list of its members as it was on 31 st March of
that year.

 Every State Bar Association and State Advocates’ Association shall inform the State Bar
Council of—(a) any change in the membership including admissions and re-admissions
within thirty days of change;  (b) the death or other cessation of practice or voluntary
suspension of practice of any of its members within thirty days.

Q4. How an Advocate Can Become Member Of Advocate Welfare Fund (Membership in Fund)

1. Every advocate practicing, before the commencement of this Act, in any court, tribunal or
other authority in a State and being a member of a State Bar Association or a State
Advocates’ Association in that State, shall apply, w thin six months of the commencement of
this Act, to the Trustee Committee for admission as a member of the Fund, in such form as
may be prescribed.
2. Every person,-
3. Admitted as an advocate on the roll of a State Bar Council, after the commencement of this
Act;
4. Practicing in any court, tribunal or other authority in a State and being a member of a State
Bar Association or a State Advocates’ Association in that State, shall apply, within six months
of his enrolment as an advocate to the Trustee Committee, for admission as a member of
the Fund in such form as may be prescribed.
5. On receipt of an application under sub-section (1) or sub-section (2), the Trustee Committee
shall make such enquiry as it deems fit and either admit the applicant to the Fund or, for
reasons to be recorded in writing, reject the application: Provided that no order rejecting an
application shall be passed unless the applicant has been given an opportunity of being
heard.
6. Every applicant shall pay an application fee of two hundred rupees along with the
application to the account of the Trustee Committee.
7. Every advocate, being a member of the Fund, shall pay an annual subscription of fifty rupees
to the Fund on or before the 31st day of March of every year: Provided that every advocate,
who makes an application under sub-section (1) or sub-section (2), shall pay his first annual
subscription within three months of his becoming a member of the Fund: Provided further
that a senior advocate shall pay an annual subscription of one thousand rupees.
8. Any member of the Fund, who fails to pay the annual subscription for any year before the
31st day of March of that year, shall be liable to be removed from the membership in the
Fund.
9. A member of the Fund removed from the membership in the Fund under sub-section (6)
may be re-admitted to the Fund, on payment of arrears along with re-admission fee of ten
rupees, within six months from the date of such removal.
10. Every member of the Fund shall, at the time of admission to the membership in the Fund,
make nomination conferring on one or more of his dependents the right to receive, in the
event of his death, any amount payable to the member under this Act.
11. If a member of the Fund nominates more than one person under sub-section (8), he shall
specify in the nomination, the amount of share payable to each of the nominees.
12. A member of the Fund may, at any time, cancel a nomination by sending a notice in writing
to the Trustee Committee.
13. Every member of the Fund, who cancels his nomination under sub-section (10), shall make a
fresh nomination along with registration fee of five rupees.
14. Every member of the Fund, whose name has been removed from the State roll under
section 26A of the Advocates Act, 1961 (25 of 1961), or who voluntarily suspends practice,
shall, within fifteen days of such removal or suspension, intimate such removal or
suspension to the Trustee Committee and if any member of the Fund fails to do so without
sufficient reason, the Trustee Committee may reduce, in accordance with such principles as
may be prescribed, the amount payable to that member under this Act.

Q5. Who are not eligible for certain benefits provided by the fund?

Ans. No senior advocate, or a person in receipt of pension from the Central Government or a State
Government, shall be entitled to ex gratia grant under section 19 or payment of amount on his
cessation of practice under Section 21 or any other benefit.