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.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

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 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.