recovery under 194c or 194j, Income Tax

[sid chakravarthy]

sir,

The Govt has issued orders permitting to engage a person as Medical Officer on contract basis at a consolidated pay of rs 9300.00 per month for a period of one year... and we entered into an agreement with the doctor.In this case I would like to know the rule position whether to apply Section 194 C or 194J in recovering TDS (Income Tax).

Chakravarthy S.N.

Posts / Replies

[Jagadeesh Tiruveedula]

194J

[DEV KUMAR KOTHARI]

As a medical officer, Doctor  seems to be an employee (may be part time employee). Therefore, proper head is 'salary' and not payment to contractor or professional.

If his engagement is in a professional capacity without relationship of employer - employee, then the payment will be in nature of 'professional fees'/