What are the deduction differences between regular and contractual employees?

What are the differences in deductions between regular employees and contractual employees in the previous tax regime of India?

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Advocate By LEAD INDIA Answered: 07 Apr 2025

Regular employees benefit from tax deductions like HRA and PF, reducing their taxable income. Contractual employees, on the other hand, don’t get the same benefits, and they usually pay taxes on their full income without exemptions. This makes their tax liability higher compared to regular employees, who have more deductions and allowances available. For further legal assistance contact us on our helpline number. 
 

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