Taxes on Salary Employee

[Pawan Kumar]

Dear Experts,

Hope you all are well!

Ram is an employee of some ABC Pvt. Ltd. company. He is highly paid but the work given to him is too much, so he has decided to recruit 2 employees under him at different Rented location. He will be paying directly to these 2 employees, this has got nothing to do with ABC Pvt. Ltd. This will now reduce his work. The new location is on rent and he is paying 20k a month for it.

Now the question is that if he was just and employee, only Income Tax was applicable. But now as he has further 2 employees under him, pls confirm what further taxes will be applicable?

If still there is only Income Tax applicable than will his employees salary and Rent of the location will be deducted from his annual salary and on the balance amount, Income Tax will be applicable?

Pls, advice. Thanks.

AI Summary

Tax Implications: No Deductions for Hiring Employees or Rent; Tax on Total Income Only An individual working for ABC Pvt. Ltd. is considering hiring two employees and renting a location to reduce his workload. He will pay these employees directly, independent of his employer. The query seeks clarification on whether additional taxes apply beyond income tax due to these changes. The response clarifies that tax will be levied on the total income received by the individual, and no deductions will be allowed for hiring additional employees or for the rental expenses.