Moonlighting and Tax Deductions: How to Ensure Compliance with Both Employers

Moonlighting and Professional Tax Deductions
To find out if moonlighting affects professional tax deductions from both employers, you need to verify whether both employers are depositing the Provident Fund (PF). If only one employer is depositing PF, then it indicates that professional tax is being deducted by that employer only. This discrepancy could potentially lead to issues with tax compliance. It is essential to ensure that both employers are fulfilling their legal obligations regarding PF contributions and tax deductions to avoid any complications in the future.

What is the issue? Let me examine the case like this: You have worked in place A for a certain period, let's say, 3 months, and then moved to place B and started working there. You have paid PT in A, and it is payable in place B as well. What is the issue? Profession Tax

Profession Tax is a subject of the local self-government, and you are expected to pay it at the place where you have worked or earned income. Hence, you should pay it in place A as well as place B. Obviously, the amount of tax payable will be based on the income that you have received from each locality. Accordingly, it will be restricted to the income for 3 months in place A and income for 9 months in place B. Then what is the problem?