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Querist : Anonymous

Querist : Anonymous (Querist)

04 December 2009
If during the beginning of the financial year, if employer employee relationship was there to a person and he resigns during the middle of the year, say in September, does the employer employee relationship ceases from the date of resignation or the employer employee relationship has to be continued till the end of the financial year.

This query arose, as the same person render service as a professional - after resignation – does the payment for the professional fee to the said person has to be considered under Sec 192 or 194. ( as at the beginning of the year he was an employee ).

Can we issue Form 16 and Form 16A to the same person in a particular financial year.

Please also indicate the relevant provision in the IT Act.

CA. SUDHARSAN K G

CA. SUDHARSAN K G (Expert)
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04 December 2009 Income be classified as SALARY,only if there is Employer-Employee relationship.

In your case, deduct the TDS on Salary for the Salary Amount as usual for Professional Service.

Finally, You have to issue Form 16 and 16A for those periods.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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04 December 2009 When any Employee resigned from their employement where they was working, that place Employer-Employee relationship ended. for this Period you have to give him 16 and after Professional in this year till end you have to give 16A if you have deducted TDS.