Employee on contract basis

can we appoint in our company one B.com person for data entry work on contract basis & deduct 1% tds instead of taking on pay roll. Is it is legally valid
Replies (7)
Quick Summary
This discussion explores the possibility of hiring a retired B.Com graduate on a contract basis for data entry, deducting 1% TDS rather than adding them to the payroll. While some suggest this is permissible, others raise concerns about its legality and potential implications for avoiding statutory contributions like PF. The focus is on retired individuals over 58 and the specific TDS deduction for contractual employment.

Yes, You can.
No. This is not allowed.

If it is acceptable then all employees do the same thing to avoid PF and salary tds
I am asking about retired person who completed his 58 years to appoint as a contract employee to deduct tds 1% on his remuneration
Not necessarily. wrong perception.
If retired employee wish to continue & employer ready to keep him for job , then what is the wrong
1% tds for what
1% tds for contractual employment

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