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Show TDS 194R INCOME

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Vipul Khambhaliya

55 Points Posted on 25 July 2023

TDS section 194R how to show in income tax return file in which clause.and how to show in book of account

Replies (2)

Quick Summary

Section 194R of the Income Tax Act covers TDS on benefits or perquisites received in business or profession. You should declare the value of these benefits as income, typically under 'Other income' in your Profit & Loss statement (Schedule BP for business assessees). The TDS deducted by the provider can then be claimed in the TDS schedule of your Income Tax Return (ITR). Remember to gross up the benefit if the provider bore the TDS, as the TDS itself is also considered a benefit.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 26 July 2023

Depends upon kind of benefits received; but generally, you can declare it in IFOS and claim its TDS.

Aashok Kumar Sharma

Finance/Compliance Consultant

77903 Points Posted on 07 November 2026

Show the benefit as income, and claim the TDS:

• 194R covers benefits or perquisites (free goods, sponsored trips, incentives in kind) received in the course of business or profession. The value is taxable as business income (Sec 28(iv)).

• In the ITR (business assessee): include the value of the benefit in "Other income" in the P&L (Schedule BP / P&L "other income"), and claim the 194R TDS in the TDS schedule. In books: Dr Asset or Expense (benefit received), Cr Other income; Dr TDS receivable for the TDS paid by the provider.

• If the provider bore the TDS (common in 194R), the TDS itself is also a benefit, so gross up.

• Non-business recipients (e.g. a doctor at a hospital receiving a sponsored trip from a pharma company): it's still professional income. Salaried employees aren't covered by 194R (their perks are taxed through 192).

• If the benefit is a capital asset (e.g. a car), record it as an asset at FMV.