Difference between Employee on Contract and Payroll

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Employees On Payroll On Contract Permanent Job Employer and Employee Relationship Taxed as Salary income TDS Deducted by Companies as per Slab Rate They Receive Form 16 From Company Job for a Particular Period No Employer and Employee Relationship Taxed as Income from Other Sources or PGBP TDS Deducted @10% under 194J or 1% under 194C They Receive Form 16A From Company Standard Deduction A vailable to only Employees on Payroll Monthly Salary 40000 Annual Salary 480000 Standard Deduction 50000 Income from Salary 430000 Income from O ther Sources 0 Gross Total Income 430000 Monthly Salary 40000 Annual Salary 0 Standard Deduction 0 Income from Salary 0 Income from O ther Sources 480000 Gross Total Income 480000