Moonlighting professionals, those who earn from a primary job and a secondary gig, are being targeted by the Income Tax department.
With the rise of remote work, many individuals have taken on additional employment, yet haven’t fulfilled tax obligations for these extra earnings.
Tax Specialist Gauri Chadha explains that sometimes, individuals neglect Tax Deducted at Source (TDS) for minor earnings, leading to these incomes not being reflected in the tax records (AIS, 26as).
Failing to report secondary income in tax returns could result in receiving an income tax notice.
Accompanying the tax dues, there will be interest charges
If you’re among those who’ve received such a notice, you must establish that the secondary income isn’t your primary livelihood.
If it indeed constitutes a major income source, the applicable taxes should be paid.
Should the notice be accurate, the requested taxes plus interest will be necessary.
Penalties are Inescapable
Additionally, delayed tax payments might attract penalties.
This could lead to extra payments and avoiding these penalties won’t be an option.
