Fixe term employment

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This discussion clarifies the tax deducted at source (TDS) for employees on fixed-term contracts. If the company exercises control, sets fixed hours, and provides supervision, the remuneration is considered salary. Therefore, TDS should be applied under Section 192, and statutory benefits should be provided, with a Form 16 issued annually.

Rajkumar Gutti

Rajkumar Gutti (Querist)

22 September 2026 One employee appointed for one year as term employment service in company's account department as a Accountant on fix remuneration.
Controlling power is with company. As per social security code 2020 term employment is treated as contractual employee.
My Question -:
On fix term employment employee remuneration is tds applicable as professional service tds or tds on salary, or tds on contractor.
Kee point of -:
Controlling by company.
Fixed remuneration
Fixed hours
Supervision by company 's superior authority

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

22 September 2026 For fixed-term contracts with defined working hours and direct administrative oversight, the presence of organizational control classifies the remuneration as salary. The company should deduct TDS strictly under Section 192, extend statutory benefits where applicable, and issue Form 16 at year-end.

Rajkumar Gutti

Rajkumar Gutti (Querist)

22 September 2026 OK, Thanks sir, धन्यवाद

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