194C AND 194JB TDS

This query is : Resolved

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This discussion addresses whether an event management and fabrication business can file ITR-4 and declare its full gross receipts of £2,50,00,000 under Section 44AD, even with TDS deducted under both 194C and 194JB. The advice suggests that if the entire income is from business activities and not a specified profession, it's generally permissible to use 44AD. However, it's crucial to maintain clear documentation and be prepared for potential queries from the ITD, especially regarding the portion with 194JB TDS.

deepak

deepak (Querist)
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03 October 2025 The client does event management work and builds fabrication stalls. all payment reciept come through online mode. Business receipt of Rs. 2,42,00,000 came under 194C tds, business receipt of Rs. 800,000 came under 194JB TDS. Now which return should I file and can we show full income 2,50,00,000 44AD in ITR -4 ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 October 2025 If the entire business income is from event management and fabrication (not a “specified profession” under 44ADA), even if TDS is deducted under 194J by some clients, the entire gross receipt (₹2,50,00,000) can be shown under Section 44AD in ITR-4, provided proof and explanation are ready in case of scrutiny.

The ITD system may flag/raise a query if receipts with 194J TDS are filed under 44AD, but if the nature of the business is not of specified profession, a proper written clarification and supporting documents should be kept ready.

If any part of the ₹8,00,000 (with 194JB TDS) is actually from a specified profession (not regular business), this should be reported separately in ITR-4 under 44ADA, not 44AD.

Otherwise, if the whole work is business/events-related, all gross receipts (₹2.5 crore) can be reported in Section 44AD in ITR-4.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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03 October 2025 Good Luck.....

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