Moonlighting professionals are facing notices from the Income Tax Department. Moonlighting professionals are those individuals who are earning a living from their main job as well as from a second job. Due to work from home, many people did two jobs, but they did not pay tax on the second job.
According to tax expert Gauri Chadha, many times a person does not deduct TDS on small amounts, due to which the income does not appear in AIS, 26as. If a person has not mentioned the income from his second career in his tax return, he may face income tax notice.
If you have also received this type of notice, you will have to prove that it is not your livelihood. If that is your livelihood, you should pay tax on it. If the notice is correct, you will have to pay the demanded tax along with interest.
Can’t escape the penalty