Freelance income is other income or professional income?

Hi All,

I am a salaried employee in a private company. Apart from this i have earned around Rs.80 k for FY. 2010-2011 by providing freelance services. Should i show this income as income from other sources or should i show as profit or loss from  profession/business?

- income from other sources. as u r not registered under any profession tax / trade identity.

Should i inform my employer about this other income to include in Form 16 or can i show seperately in my tax return without connecting it to Form 16?

- if you declare to employer regarding professional income then it would be counted as violation of terms of employment.

If i show this 80k as profit/gain from business or profession as a seperate head of income in Tax return, can i deduct expenses for earning this income (like salary paid to staff, depreciation on capital asset purchased, other expenses etc;).

- having engaged in employment one can not do separate business in his own name, neither he can get employed at other place of similer work. so please chek your employement terms / rules before taking such step, employer can drag u in legal procedure if it is brought to his notice for violation of employment terms.

Appreciate your valuable suggestions.