Not able to file ITR

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If you're facing issues filing your Income Tax Return (ITR) due to TDS deductions under sections 194A and 194C, you're not alone. The income tax portal can be tricky, often blocking ITR-2 and causing errors with ITR-3. The correct approach is usually to file ITR-3 or ITR-4, declaring contract income as business income and any interest income under 'Income from Other Sources'. Ensure you populate the business income schedules correctly to resolve validation errors. If unsure, it's advisable to seek professional guidance.

Ankita Sen

Ankita Sen (Querist)
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14 July 2026 Which ITR to file if the TDS is deducted under 194A and 194C? If I'm filing ITR3 it's showing you cannot file under this as there is no business income and if I'm filling under 2 its saying I cannot file under ITR 2 as 194 C is not considered under ITR 2

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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15 July 2026 The income tax portal blocks ITR-2 because Section 194C (Contractor TDS) requires reporting business/professional income. ITR-3 errors out because the contract's gross revenue hasn't been declared in the business schedule yet.

The Solution: File ITR-3 or ITR-4. Declare the gross contract amount under Schedule PGBP (Business Income) and the interest amount under Income from Other Sources. Once the business income schedules are filled out, the validation error will clear.

CA.Pujah

CA.Pujah (Expert)
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15 July 2026 ITR-2 is not applicable. Fill up ITR-3 with contract income as Business income and Interest income under Other sources income.
ITR-4 is generally applicable, but there are some exclusions. So, decide as per your nature of business and turnover & income limits prescribed.
If required, consult a professional to help you with proper reporting of business income, expenditure, assets, etc.

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