अब आप न्यूज्ड हिंदी में पढ़ सकते हैं। यहाँ क्लिक करें
Home » Business » Income Tax department issues notices to defaulters, charges interest and penalties: All you need to know

Income Tax department issues notices to defaulters, charges interest and penalties: All you need to know

The reason for the ITD's assault on moonlighting is their belief that such individuals are evading their tax obligations.

By Newsd
Published on :
Tax Season Unveiled

Income Tax department issues notices to defaulters: The Income Tax Department (ITD) has launched a campaign to send notices to moonlighters who have failed to report their earnings from secondary employment. The reason for the ITD’s assault on moonlighting is their belief that such individuals are evading their tax obligations.

The income Tax department issues notices to defaulters

The ITD has utilised a variety of techniques to identify professionals who freelance, including:

The ITD is conducting a comprehensive analysis of data from a variety of sources, including bank statements, credit card records, and social media postings, in order to accurately identify moonlighting individuals.

The ITD is utilising artificial intelligence (AI) to aid in the identification of moonlighting professionals. Through the use of AI, enormous amounts of data can be analysed quickly and effectively, allowing the ITD to identify moonlighting individuals who might otherwise go undetected.

If the ITD identifies you as a side hustler, you can anticipate obtaining a notice requiring you to explain your income. Essential documentation demonstrating that your income reporting is exhaustive must be provided. Inability to provide such documentation could result in penalties.

It is important to note that the ITD has intensified its efforts to prevent professionals from moonlighting in recent years. This increased scrutiny is motivated by the belief that these individuals are not paying their fair share of taxes. As a moonlighting professional, it is of the uttermost importance to report all earnings accurately to the ITD.

Information from employers: Employers are required to provide information regarding employees who engage in moonlighting activities. The ITD is intensifying its efforts against moonlighting professionals and is requesting information from employers whose employees engage in such activities.

The ITD is requesting the following information from employers: their employees’ names, Permanent Account Number (PAN) information, designation, salary, secondary employment, and secondary job earnings, if applicable.

Employers are required to provide this information to the ITD within 30 days of receiving a request. In the event of noncompliance, penalties may be imposed on employers.

The ITD’s belief that moonlighting professionals are circumventing their tax responsibilities is the impetus behind their request for this information from employers. The objective of the ITD is to ensure complete and accurate reporting and taxation of all income sources, including revenues from side gigs.

The ITD is actively receiving reports from the general public about individuals engaged in moonlighting activities. The Department has established a specialised online platform where the general public can submit information about professionals who freelance.

The ITD is also promoting the ability to anonymously report moonlighting professionals. This can be done by contacting the ITD’s helpline or by submitting information via their online platform.

The ITD is offering rewards for reports that lead to successful prosecutions of moonlighting professionals in an effort to bolster its anti-moonlighting efforts. These rewards can reach up to one lakh rupees.

ITR Filing : Income Tax Department Mulls Extension, Stay Updated!

ITD’s crackdown on independent contractors

Individuals frequently omit TDS deductions on small amounts, resulting in the absence of income records in AIS and 26AS. Failure to report income from a second job on one’s tax return may result in the issuance of a notice.

The ITD is increasing its efforts against moonlighting professionals who neglect to report their income. With access to multiple data sources, such as AIS and 26AS, the ITD can effectively identify these professionals.

The ITD is likely to issue a notice requesting an explanation for unreported earnings upon identifying a moonlighting professional who has not disclosed their income. The individual must provide supporting documentation to demonstrate comprehensive income reporting. In the absence of such evidence, penalties may be assessed. You must pay the required tax in addition to the applicable interest.

In the event that you pay your taxes late, you may incur a penalty. This penalty may necessitate an additional payment, making its avoidance impossible.

It is essential to adhere to the necessary procedures to avoid ITD notices and maintain legal compliance.