Difference in ‘Contract of Employment’ & ‘Contract for Employment’?

When there is ‘Employer/Master’ & ‘Employee/Servant’ relationship:

Where employer not only directs ‘what & when a thing has to be done’ but also ‘how it has to be done’ & the employee is bound to carry out employer’s instructions, it is called ‘Contract of Employment’. E.g. an employee of ABC Limited has a ‘Contract of Employment’. Here the fee received comes under ‘Salaries’.

Where As

When the employer merely directs ‘what has to be done’ while the methodology for carrying out the job is left to the discretion of the employee, it is called ‘Contract for Employment’. This applies especially to professionals & technocrats who take up assignments. E.g. Chartered Account working for ABC Limited has a ‘Contract for Employment’. Here the fee received comes under either income from ‘Business or Profession’ or income from ‘Other Sources’.