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Taxation of total winnings from online games 194BA vs 115BBJ

Tax queries 894 views 1 replies

In a ROI of individuval where as amount paid or credited as per 26 AS u/sec 194BA is "more" than  the amount earned and returned u/sec 115BBJ ie., total summary of the assessee for the year shows a lesser amount or negative (loss);  and finally return become defective when compared to 26AS  how can we get through this defective return   

The gross receipts shown in Form 26AS, on which credit for TDS has been claimed, are higher than the total of the receipts shown under all heads of income, in the return of income. Thus, while credit for TDS is being claimed, the corresponding receipts are not offered in the respective income schedules, to arrive at the taxable total income. Hence, the return of income filed is regarded as defective, as provided in Explanation (a) under section 139(9). 

Replies (1)

If the Return of Income (ROI) shows a loss or negative amount due to: 1. Amount paid/credited u/s 194BA (Section 26AS) being more than the amount earned/returned u/s 115BBJ 2. Total summary showing a lesser amount or negative (loss) And the return becomes defective when compared to Form 26AS, follow these steps: 1. _Revise the return_: File a revised return (u/s 139(5)) to correct the discrepancies. 2. _Explain the difference_: Provide a detailed explanation for the difference between the ROI and Form 26AS in the revised return. 3. _Supporting documents_: Attach supporting documents, such as: - Computation of income - TDS certificates - Form 16A (if applicable) 4. _Rectify the defect_: Ensure the revised return addresses the defect and matches Form 26AS. 5. _Submit online_: File the revised return online and verify it. 6. _Wait for processing_: Wait for the revised return to be processed and corrected.  Remember to address the defect promptly to avoid further complications or penalties.


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