194JB INCOME

Section 194JB applies to income from online games, where TDS is deducted by the online gaming platform. The applicable ITR depends on the nature of the income and the assessee’s overall income—not merely because TDS is deducted under section 194JB.

• If this is casual income from online gaming and there is no business activity, generally ITR-2 is applicable (provided there is no business/professional income).
• If the online gaming activity is carried on systematically as a business/profession, then ITR-3 should be filed and the income should be offered under Profits & Gains of Business or Profession (PGBP).
• Merely receiving ₹7,10,000 with TDS u/s 194JB does not automatically require maintaining books of account. Books are required only if the provisions of Section 44AA become applicable based on the nature of the activity and turnover/income.
• The gross winnings should be reported as taxable income, and credit of TDS deducted u/s 194JB should be claimed in the ITR.

If received accounting fees, you can file ITR 4 u/s. 44ADA. No need to maintain accounts for the fees.In case you have any capital gains, file ITR 3 with same configaration.

Section 194JB under the Income Tax Act, 2025 deals with TDS on income by way of interest or similar payments made by partnership firms or LLPs to partners (or specified parties). This is a renumbered and restructured provision in the new Act.

WHY IS 194JB INCOME SHOWING IN YOUR DOCUMENTS: Under the new Act, a firm is required to deduct TDS on remuneration, interest, and commission paid to partners if such payment exceeds the threshold. This TDS will show under Section 194JB in your Form 26AS.

HOW TO REPORT IN ITR:

• If you are a partner and received remuneration or interest from the firm taxable under Section 28(v) of IT Act 2025: Report this in Schedule BP (Business or Profession) > Partner in firm
• The firm should issue a TDS certificate (Form 132 or equivalent under the new Act) showing TDS deducted under 194JB
• Claim TDS credit in Schedule TDS2 of your ITR

IF 194JB INCOME IS UNEXPLAINED:

• Cross-check Form 26AS against your partnership deed to confirm this is your share of firm income
• If you are NOT a partner in any firm, the TDS entry may be a mismatch. Use AIS Feedback to raise a dispute

NOTE: If you are a professional and were paid fees by a firm, TDS may have been deducted under 194JB instead of old 194J. The treatment in your ITR remains the same - report as professional income, claim TDS credit.

For guidance on how TDS on professional services works under the new Act: [TDS on Professional Technical Fees Section 194J Guide India](https://taxgarden.in/blog/tds-on-professional-technical-fees-section-194j-393-guide-india)