What happens if a freelancer does not report income in India?

This page provides general information only and is not legal advice.

Allowed with conditions

Summary

The Income Tax Act requires individuals with taxable income above prescribed thresholds to file income tax returns and report all sources of income, including freelance earnings. Whether income reporting obligations apply may depend on the amount of income, the source of income, and other factors.

Law or Regulation Involved

This generally relates to provisions under the Income Tax Act regarding filing of income tax returns, reporting of income from various sources, and obligations applicable to individuals earning income from freelance or professional services.

Key Conditions / Exceptions

• Filing requirements may depend on whether total income exceeds basic exemption limits or falls below taxable thresholds.
• Certain types of income or amounts may have different reporting obligations or exemptions.
• The timing and manner of income reporting may vary depending on circumstances and applicable provisions.
• Retroactive filing or corrections may be possible in some situations, subject to applicable rules and limitations.

Risk If Ignored

If income reporting obligations under the Income Tax Act are not complied with, this may result in notices, queries, or requests for clarification from tax authorities. Authorities may require explanations, additional documentation, or corrections to filed returns. The specific outcomes may vary depending on factors including the amount of unreported income, the duration, and the applicable provisions.

When to Talk to a Professional

You may want to consult a Chartered Accountant to understand your income reporting obligations, assess whether you have unreported income, and determine appropriate steps for compliance with applicable tax requirements.

Last reviewed: 2025-03 | Version: 1.0