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.