Employer and Employee relationship.

1.If an employee receives salary from an employer, then the income is taxable under the head Income from Salaries .

Thus, there should be  proper employer and employee relationship between payer and payee for income to be taxed under Income from Salaries.

  Example:-

  Employee  on payroll in a Company

 

2.I f there is no such relation then income is taxable under Income from other sources or Profit and gains of business  and profession(PGBP)

    Example:-Person working on contract in a Company are taxed under PGBP

 

 

 

  Employer and Employee relationship. - Theory

 

 

  1. Income Tax
  2. Income from Salaries
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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