Employee TDS And Salary Issues

khushbooaggarwal05@gmail.com
Please study the following case and let us know your opinion :
suppose a person X is based in Assam and is working for pvt ltd company Y from his home in Assam. Closest office of the private limited company Y is based in Delhi. Company Y is paying that person 16,000 Rs per month.
Is it legal or compliant if company Y show person X as full time employee of the company on payroll ? Person X has no other income source. Or company Y has to show that person X as contractor and hence TDS will be applicable ?
Also, for compliance purpose what are the documents (PAN card, appointment letter etc) we should keep in our company file for such employees ?
Also, is there any compliance which makes it mandatory to increase salary of employees every year or we can keep it same if employee is happy ?
Also, Can we transfer few months salary of an employee together or it\'s mandatory to transfer it every month. Employee is happy if we transfer the salary together.
Please let us know.
Regards,
Khusboo
pon1965
The person X has to be shown in the payroll of Y company irrespective of the company base. Since the X person is getting only Rs.16000/- p.m., he is not liable to pay income tax and hence no TDS.
Pon
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