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Contract,pf and pt act

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This query is : Resolved

nikhil (Querist)

04 February 2013 In case their is a contract between a company and a individual for employment and the company restrict the employee from PF benefits but deduct PT is the contract void,voidable or valid. As in a case a company has a contract with an individual for 2 years and have given a designation but have specifically restricted the employee to participate in PF but deduct PT from the salary. Would this be covered u/s 192 or 194J of Income tax? and what is the standing of Contract

Santosh Mishra

Santosh Mishra (Expert)

02 March 2013 The contract would not said to be valid.

Since it is a contract of employment, his income should be dealt under section 192.

Only when person is contracted as a consultant to provide assistance in specific projects, section 194 would apply.

Also, profession tax is deducted by employer from its employees and not from consultants/professionals; they require to pay the same themselves.

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