Hello all,

I am working with an ITES company, and the main work is data conversion. We have certain employees who are also working as freelancers for data conversion. I want to know whether dual employment is valid since out of the four locations/offices the company has, such practice is prevalent only at one of the offices.

Also, I would like to know what rate of tax needs to be deducted on freelancers' income as well as salary income for the same employee. Currently, we are deducting 10% u/s 194J for freelancer income and for salary income as per the income tax slab.

Kindly share your expert and legal opinion on the above matter.

Regards

From India, Mumbai
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Greetings,

I couldn't understand why dual employment is acceptable. Is your employer not paying those employees well? They are freelancing beyond working hours. Are they working for the same client? I couldn't understand how you can deduct taxes for what they are earning beyond the job.

Please help me understand.

From India, Mumbai
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Hi Cite Contribution,

I have also brought this issue to our management's attention regarding the unacceptability of Dual Employment, but unfortunately, it is still occurring.

The company is deducting taxes for the additional earnings made by employees beyond their primary job as they are providing Professional services as Freelancers. The company then raises an invoice for these services, requiring tax deduction under section 194J for professional fees payments.

Employees working as freelancers are compensated based on their grades and qualifications. Some employees are earning around Rs 40,000.00 + due to their grade, and they also invoice for Data conversion as freelancers.

I am looking to communicate to management the potential consequences of DUAL employment, including penalties or other legal actions that can be taken against the company/management.

It is challenging to determine if employees are freelancing outside of working hours. There is a possibility that they may be engaging in freelancing work during working hours, possibly with the assistance of a senior manager, which was previously unknown to us. I have reported this issue.

Rs 3660 (freelancing income)
C03
COPYEDITOR
21586.00 Salary for May

Rs 1900 (freelancing income)
C03
COPYEDITOR (L1)
25646.00 Salary for May

Rs 4580 (freelancing income)
C06
EDITORIAL SERVICES MANAGER
40870.00 Salary for May

Rs 2940 (freelancing income)
C06
ASSISTANT MANAGER
37014.00 Salary for May

Rs 1880 (freelancing income)
C01
JUNIOR ASSOCIATE
13315.00 Salary for May

Rs 1860 (freelancing income)
C01
JUNIOR ASSOCIATE
10908.00 Salary for May

Rs 1492 (freelancing income)
C05
TEAM LEAD
42473.00 Salary for May

These are just a few examples.

Regards

From India, Mumbai
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Please switch to the anonymous mode. This data looks sensitive . I ave edited the names from your post, to ensure privacy. Thankyou for considering my request .
From India, Mumbai
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Anonymous
Hi Cite Contribution,

I generally use the references received in my personal email from Cite HR. I am just using this for the first time; hence, I do not know how to switch to Anonymous mode.

Regards, Hemal.

From India, Mumbai
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Anonymous
Hi Cite Contribution,

Would it be possible for you or another senior member to speak with me directly regarding this matter? One of my seniors has asked me to understand the potential consequences the company may face if the top management discovers dual employment. Our parent company is based in the US, and they enforce strict policies against dual employment. We aim to resolve this issue discreetly and in compliance with the law.

Regards

From India, Mumbai
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Anonymous
Hi (Cite Contribution), Awaiting your revert on the previous thread. Could you kindly guide on the same. Regards Hemal.
From India, Mumbai
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I have been talking to many legal experts about this. Can you drop me an email at my name.surname@gmail?

I need to connect you to someone really senior, but cannot share who it is. Will take it ahead in our emails.

Thank you!

From India, Mumbai
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Anonymous
Hi (Cite Contribution), I will mail you from my personal id on your email id regarding the above mentioned issue. Regards
From India, Mumbai
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