Taxation of retainers versus employees

This query is : Resolved

Lavanya (Querist)
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30 August 2021 Hello, I work in the legal profession but have no association nor have a very good understanding with finance and taxation laws as that isn't my area of focus.
I have recently started a new job and on discussing my role with the company and their HR, the status quo of my hiring in the company became a topic of contention as I cannot be labelled as an employee but they don't take retainers, which is what most lawyers are labelled as and the higher ups have taken some time to discuss this internally and have told me they'll set a meeting up in a few days where all of us can then finalize on the offer.

If I am hired as a retainer, I don't accrue any employee benefits provided under the labour laws of India and get taxed at the source, making it much more transparent and presumably lesser but if I choose to be an employee, I get all the benefits that come with it along with the taxes that are charged on the various aspects of my income whether they be bonuses or perks and allowances. The income slab that I fall under is 15% of my total income above the lower threshold and an additional Rs. 37500.

No matter how much I try to wiggle around I can't lower my slab with the available deductions so I'm genuinely confused as to what manner of hiring should I go forward with that will net me the most amount with the lowest taxation so I can focus on my savings.

I also don't have any additional sources of income at the moment so the income from my job will be the only amount for consideration. Any help, guidance and suggestions will truly be appreciated and go a long way. Thanks in advance.