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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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 7 years. He provides courses for Mathematics and Science from Class 6 to 12. You can learn personally from here https://www.teachoo.com/premium/maths-and-science-classes/.
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