Tax authorities want IT professionals to declare income from ‘moonlighting’

Amid a debate on the ethical issues surrounding ‘moonlighting’, income-tax authorities have raised concerns about its tax implications for those who take up additional assignments outside their regular employment. Cautioning technology professionals about the tax implications, the authorities have urged them to declare any income from ‘moonlighting’ in their tax filings, according to a report in The Economic Times.

Several techies have already reached out to their tax planners, discussing with them how to declare this secondary source of income and how to minimise their tax burden. They are also trying to understand whether the extra earnings can be treated as professional income.