What if I dont declare freelancing income ?

Hello everyone, thanks for the service you are doing by helping people like me.

Here is my issue : I am a student and had done an internship this year in which I had been given as salary Rs. 50k with TDS at 30%. Apart from the other income, I also have around 1.5 lakh rupees income from various freelancing activities (writing articles etc.) via paypal.

I have done savings of Rs. 70000 in PPF so am exempt from paying tax and I need to claim back my TDS. The company will be giving me form 16. My question is that if I file ITR1 , will there be any problems ? whats the penalty if the dept. catches other source of income since there is no tax payable anyway.

Also, I will start working from next year, if I file ITR4 next year, will my company come to know of my freelance income ? Thanks in anticipation.