Salaries

Para 46.2 ncome-tax a broadsens

betruein to
may funny refer
Their relationship-It sound saythat ev
itwould it is strictlycorrcct to
40 certainly
and contractor- and that
oyer is an employee
every,u.
that one who is cmploy however, tosay
loyed bank.While, it is not equally true engaged bya
president asan em a solicitorwho doctorwho giu
his is
employeeof by another,
who is an employe oyec
is employed Forinstance,
forthat purpose,
ashis
toeither the o
the a ishis employee. him of
employcdby canotheris employed by would think reterring v. Great West[d
him
to docertain work for but no one or his patient-Carter
to a patient, client
on the natureofacont
professional skillsk
of his ntia
men asan employee
em comments
professional nen 501)
Co.[1919]3WWR
Halsbury's
Laws
901.

of England
thus:
ofcmployment that there werefourindicia
(4th edn.,
Vol. 16,para

ofa contract of services:(1)the

and
employer'snpow

other remuneration;rin
( th

beensaid
of wages
;(2) the payment the work ;and
(4) the employer's
universal application.
W
Wher
thas of his employee method of doing
the tests is of stali
of selection
to control that none ofthe
as senior hospital

employer's
right It is now clear areemployed,such work the employeo IS to
ordismissal. on what
done. In other
qualifications control cases
es, i
suspension have little
with professional is to be for h
staff the employer
can in which
it is to work
superior a
in which worker
journalists,at all on the manner manner may nevertheSu

l
eminentno control over the the worker
do and control but as labour only' suh
may have complete done by employees, be known
employer be of a kind usually
in such cases may
and the work may contractor, and emplovinyiny
be an independent ofthecontractor is prima ia
is not the employee
sub-contractorAC 371 (H
M&W 710. An employee of
contractor.
-A sub-contractor d& Co. [1891]
Sub-contractor v. Cubitt [1842]9
v. Lindsay
of anotherif servic 1CUs

him-Rapson of the main contractor-Johnson become the employee

not the employee employermay
an employeeof one received by
an individual frt Tom
However, such payment
are lent. than employee-Payment andconsequently,
incapacity other betermedassalary may be chargeable h
und
Payment received hisemployercannot Such payment
a person other thanto tax underthe head "Salaries". For instance,thecommission If, however received

is not chargeable orprofession". of company.

and gains of business if director
is an employee
termed assalary and
the head "Profits is salary be
cannot
a director from a company commission
the company,the head "Profits and gains of business
not an employeeof either
the director is be taxable
under received by a colleue
it will
Similarly, emoluments in cash or kind
sources. the fact is received
or "Incomefrom other
consequently,
of whetherit allowance)
profession" irrespective (viz, wardenship
his college is salary, work or non-academic
lecturerfrom a the
is received
for academic question
paper by university,
or whether it
the same lecturer is
paid for setting and is taxable under the
When, however, from the employer,
as it is not received received from emplover
is not salary, that what is not
remuneration The moot point is as

head Income fromothersources". of Parliament or

a StateLegislature is not treatednot
A Member him are, therefore,
and allowances received by
as salary.
cannot be termed
to tax under the head
Salary "Income
an employee of the Government.
head "Salaries" but arechargeable 22, 1967.
to tax under the dated May
chargeable F. No.40/29/67-IT(A-),
Circular Letter:
from other sources"- - there is no difference
- not different Conceptually,
and Conceptually or services rendered,
46.2 Salary wages for work done
and wages. Both are compensation of work,while
between salary
in connection with
services of non-manual type v.
paid CI
though ordinarilysalaryis Duplicators (P.)Lid.
in connection with manual services-Gestetner
wages are paid
ITR 1 (SC).
[1979]117 from more than one
an individual receives salary
46.3 Salaryfrommore than onesource-If or duc to
the same previous year (maybe due to change of employment s
employer during each source
salary from
with more than one employer simultaneously), on
employment if a clerk works with two employers part
taxable under the head "Salaries". For instance, the head "Salaries
time from both the employers will be chargeable to taxunder
basis, salary