5 Answers
The plain and simple answer to this is a “NO” as this is not your primary business. You need not file anything. Also, if you have received amounts in cash, you need not show that as income. Not showing cash income is a way of tax planning and not tax evasion. However, if you have received amounts through a channel directly to your bank account. You can treat it under the head “Income from other sources”.
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Dear client,
You do not need a license if this is occasional work and not a regular business.
The ₹29000 you received is taxable income. If your total income in the year is below ₹2.5 lakh, you do not need to pay tax, but you should still declare it in your income tax return.
If you start doing this regularly or earn more in future, you may need to register your consultancy and get a GST number if income crosses ₹20 lakh.
I hope this answer helps, in case of further queries, please dont hesitate to contact us.
The compensation you received can be disclosed as income from other sources under the IT act as the same is not primary business and further it is not necessary for you to register yourself for GST as your turnover as disclosed is less than 20 Lakhs p.a. Kindly reach out to us for further discussion.
As per Indian tax laws, any income earned—whether from regular business or occasional services—is taxable if it exceeds the basic exemption limit (₹2.5 lakhs for individuals below 60 years). Since ₹29,000 is below this threshold, no income tax is payable, but you may still report it under "Income from Other Sources" in your ITR for transparency.
As for licensing, if this is a one-off or occasional activity and not a regular business, a trade license or GST registration is not mandatory. However, if you plan to continue or scale this consultancy, registration under the Shops & Establishments Act and GST (once turnover crosses ₹20 lakhs) may be required. Keeping proper records is advisable to avoid any future compliance issues.
