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 In a significant move aimed at curbing tax evasion, the Income Tax Department has reportedly started sending notices to individuals who are engaging in moonlighting activities but have not disclosed them in their Income Tax Return (ITR) filings. Moonlighting refers to the practice of working a second or third job in addition to primary employment, often without informing tax authorities. According to reports, the notices are being sent to individuals whose primary source of income is their regular employment, but who have neglected to mention their supplementary earnings in their ITR filings. “ Moonlighting became prevalent during the COVID-19 times, especially among workers engaged in the IT sector mainly to supplement income-earning capabilities. Interestingly, there is no specific restriction for engaging in moonlighting under the Income-tax Act, 1961 (“the Act”). Rather, the act contains provisions where an individual has received moonlighting income as salary,” said Yeeshu ...

 The income tax department has launched a new feature on the income tax e-filing website that allows an individual to pay income tax later. This means that an individual can continue to file ITR without paying the pending income taxes first. Once the ITR is filed, then the income tax amount can be paid, albeit with some conditions. Earlier the ITR could only be filed once the due taxes were paid. “Income tax department has given an option of pay later when we file income tax return (ITR). Therefore, an individual can file an ITR without paying income tax dues first by using the pay later option,” said CA Abhinit Singh, Founder, Ready Accountant, a Kolkata-based educational institution. Read below to find out how to use the ‘Pay Later’ option on the Income Tax Department’s e-filing portal. Pay later facility is available for this tax payment According to Mihir Tanna, Associate Director (Direct Tax), S K Patodia & Associates, a Mumbai-based CA firm, “The ‘Pay Later’ option can be...