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?
CAclubindia
