Salary/contract money

TDS / TCS 707 views 2 replies

sobergal

77 Points Posted on 23 June 2009

A govt deptt has taken professionals on contract basis. In different districts, the remunerations paid to them are being treated as salary or professional income by discretion of officials. So as Form-16 or 16-A has been issued accordingly. It creates a lot of difference coz professional inc. has room for showing expenditure & tax incurred is less on net income.

I want to clear my doubt, if there is some law governing that which type of remunerations are going to be treated as "salary" or "professional income", especially for a contractually hired professional by a deptt.

Or its mere employers discretion to treat the ammount as either?

Replies (2)

O.D.SHARMA

DGM-F & A

1734 Points Posted on 23 June 2009

Dear,

This depends on the contract offer.The terms can guide u.If this is total contact for the work & a gross amount is paid in %age its professional income & form 16 A will be issued.other way contractual job is there & monthly paid .Indicates that form 16 will be issued & taken as salary.

sobergal

77 Points Posted on 25 June 2009

Originally posted by :O.D.SHARMA
"	Dear, This depends on the contract offer.The terms can guide u.If this is total contact for the work & a gross amount is paid in %age its professional income & form 16 A will be issued.other way contractual job is there & monthly paid .Indicates that form 16 will be issued & taken as salary.	"

Its contractual job for doctors. Payment is monthly. But two adjacent districts are dealing this in different manner. One is isuuing form 16-A; other form 16.

In case 16-A is issued, doctor can show expences & taxable ammount can be braught down. Plz comment!