Income Tax Notice on Moonlighting: The Income Tax Department has sent notices to some people who were doing Moonlighting because they told the income of their job but the income from Moonlighting was hidden.
Income Tax Notice on Moonlighting: The Income Tax Department has recently sent notices to some people who were moonlighting along with their jobs. This notice is between 2019-2020 and 2020-2021. The Income Tax Department found that there are many employees who had filed income tax returns on their regular salary but their income was more than their regular salary from different sources. That is, such employees who were earning income through moonlighting but were not giving information about it to the Income Tax Department.
Most of the people earning through moonlighting are IT sector, accounting and management professionals. There are many people in whose account money has been transferred from abroad, but while filing income tax return, they have paid tax only on their regular salary. Such cases have been seen the most between the years 2019 and 2021.
How was the error detected?
During this period, the Income Tax Department has issued notices to more than 1,100 such employees who have not paid tax on earnings through moonlighting. The special thing is that the information of most of the employees earning through moonlighting has been given to the Income Tax Department by the companies in which they are working. In such a situation, the IT department has easily detected such people by tracking foreign transactions. Now notice has been sent to them.
Many people earned from moonlighting in lockdown
You will remember that during the lockdown, most of the companies had given the facility of work from home to the employees. In such a situation, people were earning handsomely by sitting at home through moonlighting. Along with his company, he was also working on many other projects. Working in more than one company simultaneously is called moonlighting. To stop moonlighting, many big companies like Wipro, Infosys, TCS had also taken action against the employees. Companies had also fired many employees from their jobs. The problems of the employees fired from the company may have ended during that time, but now again on the income tax radar are the same employees, who had earned big money through moonlighting and did not inform the Income Tax Department about it.
If you do Moonlighting then keep these things in mind at the time of ITR Filing
1. If you have done moonlighting and for this you have received money as salary, then you have to show it as your salary income. For this add your primary job and moonlighting job and calculate total salary income. For salary income, you have to choose ITR-1.
2. If you have taken professional fees in moonlighting, then you have to show it as your “Income from Other Sources”.
3. If your income is in the form of profit from any business, then you will have to show it in the business return, for this you will have to file ITR-3 or ITR-4.
