Contract,pf and pt act

This query is : Resolved

nikhil (Querist)
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04 February 2013 In case their is a contract between a company and a individual for employment and the company restrict the employee from PF benefits but deduct PT is the contract void,voidable or valid. As in a case a company has a contract with an individual for 2 years and have given a designation but have specifically restricted the employee to participate in PF but deduct PT from the salary. Would this be covered u/s 192 or 194J of Income tax? and what is the standing of Contract

Santosh Mishra

Santosh Mishra (Expert)
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02 March 2013 The contract would not said to be valid.

Since it is a contract of employment, his income should be dealt under section 192.

Only when person is contracted as a consultant to provide assistance in specific projects, section 194 would apply.

Also, profession tax is deducted by employer from its employees and not from consultants/professionals; they require to pay the same themselves.