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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.


  Employee  on payroll in a Company


2.If 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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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .