How to file ITR if you are having a second income
Moonlighting has become a topic of debate in the IT industry as working from home nowadays. While some software companies are banning it and some professionals took it as trend.
What is more important, if someone has two jobs at the same time, they are still going to pay the taxes in any ways.
If You Are Moonlighting, Which ITR Form You Should Follow
If you are salaried employee, then you will have to file income tax form ITR-1. If you have income from freelancing activity, you will have to change your ITR form. The income from freelancing will be considered as ‘income from profession’ and you will have to file ITR-4.
If Moonlighting, How Much Taxable Income You Will Pay
If You are Moonlighting along with your salaried job, then you should calculate from your second job. For example, if you are freelancing income is Rs 14 lakh, then you can show your taxable income as Rs 7 lakh. If your income from a salary of Rs 20 Lakh, then the gross total income would be Rs 7 lakh + Rs 20 lakh = Rs 27 lakh.
After paying the credit of TDS, if you have any liability according to the tax slab, then only you will have to pay extra income tax, failing which no tax will have to be paid. You will also get the benefit of exemption under 80C and 80D as per Income Tax Law.