Consultant Doctor is not employee of Private Hospital – TDS Clarification
Consultant Doctors at private hospital – Relationship & TDS -Section 192 or 194J of IT Act, 1961
Consulting or Honorary Doctors cannot be termed as employees of the Assessee Hospital. They do not receive fixed monthly remuneration, part of the remuneration paid by the patients for these doctors is retained by the Hospital, these doctors are free to practice in other hospitals, no PF or ESIC is extended, they attend the hospital as per the needs of the patients, they are not bound by any schedule for attending the hospital and the hospital does not exercise any real supervisory control on their works. The income from such hospitals is shown as income from profession and not salary. Therefore, the question of treating them as employees and their salary for Section 192 for TDS does not arise.
Judgment dated 15.9.2025 of the Bombay High Court in Income Tax Appeal No.2166 of 2018 of the Commissioner of Income Tax TDS-1, Mumbai Vs. Dr. Balabhai Nanavati Hospital with connected appeals.
