Income under section 194R

The value of the benefits or perquisites received (whether in cash or kind) should be included as part of their gross receipts/income from business or profession when filling out their ITR. No separate declaration.

Benefits or perquisites received from a business relationship under Section 194R are taxable as income from business or profession under Section 28(iv), not as income from other sources. In your ITR, show it under Schedule BP, and claim the TDS deducted as credit in Schedule TDS by matching it to your 26AS entry. Your deductor should have issued Form 16A for the TDS, which you can use to verify the exact amount.

Our [Section 194R TDS guide](https://taxgarden.in/blog/tds-on-benefits-perquisites-section-194r-393-guide-india-fy-2026-27) covers the ITR disclosure steps and how to handle cases where the perquisite value or TDS entry is missing.