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



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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.