Finance Buddy

  Diwali is a widely celebrated Hindu festival. During the festive season, relatives, friends and neighbours exchange gifts and sweets. However, it is important to note that not all gifts received during the festive season are exempted from income tax. Here are some income tax rules that must be kept in mind while receiving gifts during Diwali: Value of gifts that come under the ambit of income tax The Income-tax Act, 1961, specifies the limit above which gifts recei d during a financial year are taxed. Diwali gifts received by you will be taxed only if they are received from a non-exempted relative or a friend and the value of such gift exceeds Rs 50,000. Sujit Bangar, Ex-IRS officer and founder of Taxbuddy.com , an ITR filing website, says, "To arrive at the taxable value, an individual needs to aggregate the value of the gifts received from non-exempted relatives and friends in a financial year. If the total value exceeds Rs 50,000, then you are required to report the taxable v...

While moonlighting may be the buzzword in town right now, here's what you need to know about taxation on second income from moonlighting. Moonlighting is the buzzword in the IT sector currently. Many software professionals look at the trend as an opportunity while the companies have expressed their concerns. For the uninitiated, moonlighting refers to doing a side gig while being employed. But let’s keep aside the debate and focus on the tax angle. Are there tax risks to moonlighting?     If you are salaried, its ITR-1. If you have income from freelancing activity, you will have to change your ITR form. Business Today  spoke to Sujit Bangar, Founder, Taxbuddy.com to find out.  Which ITR form should you fill if you are moonlighting? If you are salaried, its 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.  What wi...