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Forms of employement

Forms Of Employment In India


A developing country like India has quite a different employment market. 

Today India is ranked the seventh-largest economy and third-largest in Purchasing Power Parity (PPP).

The GDP of India is estimated at $2.9 trillion.

The GDP per capita in India was $1963.55 in 2017.

The GDP per Capita in India is equivalent to 16% of the world’s average and averaged $693.96 from 1960 until 2017. It reached an all-time high of $1963.55 in 2017.(

Overview of Indian Economy and Employment.

Based on the engagement of workers in different kinds of employment, the economy is divided into three sectors:

  • Primary: Constitutes agriculture and allied activities. The Primary sector includes the maximum number of workers in India, even though the number has dropped over the years.
  • Secondary: Mainly includes the manufacturing activities, like, electricity, gas, water supply, and construction. Other productive activities have replaced agricultural work. This is also followed by rural to urban migration. This transformation in employment from agriculture to secondary and tertiary sectors is called structural transformation.
  • Tertiary: Includes services such as transportation and communication, banking, insurance, trade, and storage.
Main employment types
The five main employment types are:
  1. Permanent or fixed-term employees
  2. Casual employees
  3. Apprentices or trainees — employees
  4. Employment agency staff — also called labor-hire
  5. Contractors and sub-contractors — hired staff
Forms of employement
Indian Taxation System

In India, the government has levied direct tax under the name Income Tax on a person, also known as “assessee” under Income Tax Act, 1961 and Income Tax Rules, 1962. 

The assessee defines under Income Tax Act, 1961 as:

  • An individual who can be a salaried person or


  •  owner of the proprietorship firm, (Proprietorship in India is a type of unregistered business entity that is owned, managed, and controlled by one person.)


  • a Hindu Undivided Family, also known as HUF, (Hindu Undivided Family (HUF) consists of all persons directly descended from a common ancestor, and also the wives and daughters of the male descendants. For Example, a male and his spouse along with his two children can create an HUF and get certain relaxation in computation of taxes.)


  • a partnership firm, (Partnership firm meaning – when two or more parties or individuals sign a formal agreement to manage and operate a  business and share both the profits and losses.)


  •  a limited liability partnership firm(A limited liability partnership is a partnership in which some or all of the partners have limited liabilities. Therefore, it can exhibit elements of partnerships and corporations. Each partner is not responsible for the misconduct or negligence of the other.)
The Income Tax Department identifies the assessee by their PAN i.e. Permanent Account Number.

All income of the person is classified under the following five types, for charging income tax and computation of total income, namely:

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Veit Rose
Veit Rose
9 months ago

Very good insights are covered in this article.

John Wright
John Wright
8 months ago

It is still recommended that professional legal advice be sought when employing in India.

Lesely Caroll
Lesely Caroll
6 months ago

Never thought that Indian too have legit forms of employment..

Kavin Murphey
Kavin Murphey
6 months ago

No doubt, India has a diverse financial sector, which is undergoing rapid expansion.

Holly Kates
Holly Kates
9 months ago

Accurate data in this post.

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