Salary, fee or business gains? Type of moonlighting income decides taxation

The taxman, unlike your employer, knows about your moonlighting income via TDS, so disclose it accurately

An increasing number of professionals, especially in the information technology sector, nowadays take to moonlighting to supplement the salary from their full-time jobs with extra income from freelancing, consulting or a part-time job. Those who take this road must understand the tax laws associated with moonlighting income, report their extra earnings accurately, and choose the appropriate form when filing their income tax return (ITR). They must also evaluate whether they would benefit from opting for the presumptive tax scheme (PTS).  

Says Ankit Rajgarhia, principal associate at Karanjawala and Co. Advocates: “Moonlighting refers to the act of working on a second