Hi, I have a grave issue regarding ITR filing for one of my friends, and it may put his job at stake. He has been working in one of the top MNCs (Capgemini, TCS, etc.) for 4 years and has not filed his taxes so far, as his income was less than 4 LPA.
In 2023, his income went up to 7 LPA, and thereafter when he went to file taxes, he found that it was showing two incomes:
1. From his employer's monthly salary
2. Another income shown as professional income - he allowed his own brother to use his PAN Card for one year for a temporary job, and all those statements were done under his name 路♂️
He had no idea that a PAN should not be given to anyone else for use.
Concerns about Tax Filing and Employment
Now, if he files his income showing all of that as his own income (Salaried individuals) to his employer, will that be tracked by his MNC? Do companies like TCS, Genpact, etc., use such financial tracking software to monitor employee Tax ITR sources? Should he just not file the return for AY-24-25?
As per policies, this will be counted as moonlighting. Please guide ASAP.
**Location**: Kolkata, India
career advice required, itr filing, employee tax, pan card, moonlighting, Country-India, City-India-Kolkata
From India, Kolkata
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In 2023, his income went up to 7 LPA, and thereafter when he went to file taxes, he found that it was showing two incomes:
1. From his employer's monthly salary
2. Another income shown as professional income - he allowed his own brother to use his PAN Card for one year for a temporary job, and all those statements were done under his name 路♂️
He had no idea that a PAN should not be given to anyone else for use.
Concerns about Tax Filing and Employment
Now, if he files his income showing all of that as his own income (Salaried individuals) to his employer, will that be tracked by his MNC? Do companies like TCS, Genpact, etc., use such financial tracking software to monitor employee Tax ITR sources? Should he just not file the return for AY-24-25?
As per policies, this will be counted as moonlighting. Please guide ASAP.
**Location**: Kolkata, India
career advice required, itr filing, employee tax, pan card, moonlighting, Country-India, City-India-Kolkata
From India, Kolkata
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It is crucial for your friend to address this situation promptly and appropriately to avoid any potential repercussions. Here are some practical steps he can take:
Immediate Actions:
🔹 Advise your friend to rectify the tax filing discrepancies immediately by reporting the correct income sources and not including the professional income obtained through his brother's use of his PAN card.
🔹 Inform him to file an amended return with the accurate details to ensure compliance and transparency.
Regarding Employer Monitoring:
🔹 Large MNCs like TCS, Capgemini, and Genpact often have robust systems in place to track employee tax filings and discrepancies. It is possible that discrepancies in tax filings may be flagged during internal audits or checks.
🔹 It is advisable for your friend to rectify the situation proactively to maintain his credibility and compliance with company policies.
Moonlighting Policy:
🔹 Moonlighting, which involves engaging in additional employment without the employer's knowledge, is typically against company policies in many organizations.
🔹 Your friend should review his company's policies on moonlighting and consult HR or legal experts if necessary to understand the implications and potential consequences.
Legal Implications:
🔹 Providing false information on tax returns, such as including income earned by someone else under your PAN card, can have legal implications and may be considered tax evasion.
🔹 Encourage your friend to seek guidance from a tax consultant or legal advisor to understand the best course of action to rectify the situation and ensure compliance with tax laws.
Recommendation:
🔹 It is strongly advised that your friend rectifies the tax filing discrepancies, seeks professional advice, and takes corrective actions promptly to mitigate any potential risks to his job and legal standing.
Encourage your friend to address this matter transparently and responsibly to uphold his integrity and compliance with tax laws and company policies.
From India, Gurugram
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51Immediate Actions:
🔹 Advise your friend to rectify the tax filing discrepancies immediately by reporting the correct income sources and not including the professional income obtained through his brother's use of his PAN card.
🔹 Inform him to file an amended return with the accurate details to ensure compliance and transparency.
Regarding Employer Monitoring:
🔹 Large MNCs like TCS, Capgemini, and Genpact often have robust systems in place to track employee tax filings and discrepancies. It is possible that discrepancies in tax filings may be flagged during internal audits or checks.
🔹 It is advisable for your friend to rectify the situation proactively to maintain his credibility and compliance with company policies.
Moonlighting Policy:
🔹 Moonlighting, which involves engaging in additional employment without the employer's knowledge, is typically against company policies in many organizations.
🔹 Your friend should review his company's policies on moonlighting and consult HR or legal experts if necessary to understand the implications and potential consequences.
Legal Implications:
🔹 Providing false information on tax returns, such as including income earned by someone else under your PAN card, can have legal implications and may be considered tax evasion.
🔹 Encourage your friend to seek guidance from a tax consultant or legal advisor to understand the best course of action to rectify the situation and ensure compliance with tax laws.
Recommendation:
🔹 It is strongly advised that your friend rectifies the tax filing discrepancies, seeks professional advice, and takes corrective actions promptly to mitigate any potential risks to his job and legal standing.
Encourage your friend to address this matter transparently and responsibly to uphold his integrity and compliance with tax laws and company policies.
From India, Gurugram
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
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