Question

what do you mean by disguised employment

Answer 1

Here is your answer mate:
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Disguised unemployment is also known as under employment. In this kind of unemployment, more than the required people are employed in a particular field. The removal of a few people will not affect the productive capacity of that field.

In rural areas, disguised unemployment is generally found in agriculture. Mostly, all the members of a family work on a small farm. For example if seven members of a family are working in a field measuring two hectares, then even if we remove three people from the field, the productivity of the field will not be affected.

In urban areas, disguised unemployment is seen in the service sector among many plumbers, painter and carpenters, who are not able to find work on a daily basis and hence do odd jobs whenever required.

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Answer 2

Generally, tax authorities will view a person as self-employed if the person chooses to be recognized as such, or is generating income such that the person is required to file a tax return under legislation in the relevant jurisdiction. In the real world, the critical issue for the taxing authorities is not that the person is trading but is whether the person is profitable and hence potentially taxable. In other words, the activity of trading is likely to be ignored if no profit is present, so occasional and hobby- or enthusiast-based economic activity is generally ignored by authorities.