Income from Salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 December 2010 A person after retirement doing work in the same public sector companies as a engineer and company paying him fixed amount of rs 80000 pm and no pf and other amount are deducted regarding his income he has given form 16 for his income

i m asking from company prospective that if he is covered under employee employee relation ship then pf is to be deducted or if not then tds is to be deducted as a professional u/s 194j.

1. i want to know whether he is covered under employer employee relationship ?
or
2. or if not then he is covered like he is provide retainer-ship service to the company and tds u/s 194j is to be deducted or form 16(1) is to be given in place of form 16?

J.KARTHICK

J.KARTHICK (Expert)
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10 December 2010 1. It depends on the contract between the Company & the person ... that is to be checked first ..

2. Definitely there will be an new agreement for continuing the service to the company after retirement .

3. If that persons name is still in the Payroll , then the company has to deduct TDS u/s 192 .

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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11 December 2010 agreed to expert,
dear anonymous,
you need to first check you terms between you and your company.deduction is to be needed in both of conditions as per rules.