Скачать или смотреть Taxation on Moonlighting Income |

All about the slang- Moonlighting

Since the Covid-19 strike, uncertainty in the global marketplace has taken place. Companies allowed WFH or hybrid working of employees to keep up in the wave and meet expectations. This WFH concept introduces Moonlighting. Actually, to touch new-age lifestyle expenses and other financial requirements, employees started looking for an “extra income” by providing their services to some other employers on a part-time or hourly, or freelance basis. A few of them also started working for two or more companies without taking consent from their primary employer. Last year, many IT giants – Infosys, TCS, Wipro, etc. caught their employees doing Moonlighting.

Is it Legal or not?
As such, there is no rule on Moonlighting, but it may raise the tax complexity while filing the income tax return.

The Tax Implications of Moonlighting in India
The tax implications of second income structures are as below:

1. As a salary
Suppose someone is cheating and starts working for two or more employers at the same time. Then, it may happen that both of his employers deduct TDS. In that case, when he files his return, he’ll face a lot of tax complexities because his aggregated tax liability will be elevated than the overall TDS deducted by his both employers. Further, he/she needs to pay tax on his/her overall income as per the tax slabs. Many tax benefits like the 80C deduction, a standard deduction, PF contribution, etc. shall definitely raise the unknown tax complexity.

2. As a professional fee
Now, if someone is receiving an extra income as his/her professional fee, then he/she needs to pay the overall taxes in advance or before their respective due dates. Otherwise, he/she would be supposed to pay a heavy penalty for every late payment after the due dates. In this respect, the total payable taxes are computed under the “Profit & Gains from Business and Profession” head. He/she can also avail of tax benefits on certain expenses such as the depreciation of assets, travel expenses, internet bills, & electricity bills, etc…Just keep the receipts handy.

Here is one more catch. If someone is gaining more than thirty thousand as a professional fee, then he/she needs to pay TDS on that income. Other than this if someone provides services that come in the specified professional category (listed in section 44ADA) and gains less than Rs. 50 lakh then he/she couldn’t claim any expense deduction and is subject to pay tax on 50% of his/her overall professional fee.

In case you have got a Defective Notice u/s 139(9), get help from our eCA by clicking on this link: https://tax2win.in/ca-assisted

For more updates, follow us on:
✔️ Telegram - https://t.me/Tax2winIndia
✔️ Instagram -   / tax2win  
✔️ Facebook -   / tax2win  
✔️ Twitter -  / tax2win  
✔️LinkedIn -h  / 1318.  . n

#tax2win #incometaxindia #incometaxreturn
#moonlighting #secondincome #additionalincome #taxonsecondincome