For the different payment types, as per applicability, standard TDS rates are specified. Under certain provisions of the Act, there could be deviation from this standard deduction rate. The ‘Remarks’ column in the TDS Return is used when; either higher or lower deduction is applicable. If standard rate is being used, the ‘Remarks’ column normally does not apply. This article explains the usage of the ‘Remarks’ column in TDS Returns.
Some of the most commonly reasons where ‘Remarks’ is used, is summarized as under:
| PARTICULARS | CODE | WHETHER PAN MANDATORY |
| Lower Deduction / No Deduction is on account of a certificate under section 395(1) | A | YES |
| No Deduction is on account of declaration under section 393(6) | B | YES |
| Higher Rate under section 397(2) on account of non-furnishing of PAN | C | NO |
| No deduction is on account of deductee / payee being transporter. PAN of deductee / payee is mandatory {section 393(4) [Table: Sl. No. 8]} | T | YES |
| No deduction is on account of payment below threshold limit as specified in the Act | Y | YES |
Apart from the above there are other applicable reasons for lower / higher TDS where it needs to be reported in the ‘Remarks’ column.
For each of the TDS Returns (Forms 138, 140 & 144) and TCS Return (Form 143), the applicable ‘Remarks’ is summarized below:
| PARTICULARS | CODE |
| Form 138 – Reasons for ‘Lower / Higher / No Deduction’ | |
| Lower Deduction on account of a certificate under section 395(1) | A |
| Higher Rate under section 397(2) on account of non-furnishing of PAN | C |
| Form 140 – Reasons for ‘Lower / Higher / No Deduction’ | |
| Lower Deduction / No Deduction is on account of a certificate under section 395(1) | A |
| No Deduction is on account of declaration under section 393(6) | B |
| Higher Rate under section 397(2) on account of non-furnishing of PAN | C |
| No deduction or lower deduction is on account of payment made to a person or class of person on account of notification issued under section 194A(5) of the Income Tax Act, 1961 or being issued under section 400(1) of the Act | D |
| No deduction is on account of payment being made to a person referred to in Board Circular No. 3 of 2002 dated 28th June, 2002 or Board Circular No. 11 of 2002 dated 22nd November, 2002 or Board Circular No. 18/2017 dated 29th May, 2017 | E |
| No deduction is on account of payment made to a person referred to in section 393(4) [Table: Sl. No. 18] of the Act or on account of notification issued under fifth proviso to section 194N of the Income Tax Act, 1961 | N |
| No deduction as per the provisions of section 393(4) [Table: Sl. No. 5] | O |
| No deduction is on account of payment of dividend made to a business trust referred to in section 393(4) [Table: Sl. No. 10(d)] or in view of any notification issued under section 393(4) [Table: Sl. No. 10(e)] | P |
| No deduction is on account of payment made to an entity referred to in section 393(4) Table: [Sl. No. 7(c)(v)] | Q |
| No deduction is in view of the tax being deductible or collectible under any provision of the Act w.r.t. transaction referred in section 393(1) [Table Sl. No. 8(ii)] Note 1(a) | S |
| No deduction is on account of deductee / payee being transporter. PAN of deductee / payee is mandatory {section 393(4) [Table: Sl. No. 8]} | T |
| No deduction is on account of payment below threshold limit as specified in the Act | Y |
| No deduction or lower deduction is on account of payment in view of notification issued under section 400(1) of the Act | Z |
| Form 144 – Reasons for ‘Lower / Higher / No Deduction’ | |
| Lower deduction or No deduction is on account of a certificate under section 395(1) and 395(2) | A |
| Higher rate under section 397(2) on account of non-furnishing of PAN | C |
| No deduction is made on interest paid by an Offshore Banking Unit as per the provisions of section 393(8) | G |
| No deduction is in view of section 393(4) [Table: Sl. No. 17] in respect of an income paid to a specified fund which is exempt as per Schedule VI [Table: Sl. Nos. 1 to 4] | H |
| No deduction is in view of section 393(4) [Table: Sl. No. 16] in respect of income of the nature of capital gains on transfer of securities referred to in section 210 paid or payable to a Foreign Institutional Investor | I |
| No deduction is on account of payment made to a person referred to in section 393(4) [Table: Sl. No. 18] of the Act or on account of notification issued under fifth proviso to section 194N of the Income Tax Act, 1961 | N |
| Any distributed income referred to in section 223, being of the nature referred to in Schedule V [Table: Sl. No. 3.B(b)] | O |
| No deduction is on account of payment below threshold limit as specified in the Income Tax Act, 2025 | Y |
| No deduction or lower deduction is on account of payment in view of notification issued under section 400(1) of the Act | Z |
| Form 143 (TCS) – Reasons for ‘Lower / Higher / No Deduction’ | |
| Lower collection is on account of a certificate under section 395(3) | A |
| Non-collection is on account of furnishing of declaration under section 394(2) | B |
| Collection is at higher rate under section 397(2) on account of non-furnishing of PAN | C |
| No collection is on account of section 394(5) or section 402(6) [Table: Sl. No. 4 & 5, Column D] | F |
| No collection as per the provisions of section 394(4) | K |
| No collection is on account of receipt below threshold limit as specified in section 394(1) [Table: Sl. No. 7] | Y |
| No collection or lower collection is in view of notification issued under section 400(1) of the Income Tax Act, 2025 | Z |
Our Company made a rent of Rs. 2,00,000 for Monthly to individual person and deducted TDS amount of Rs.20,000/- .
In quartely return filing which remark will be applicalbe. Please reply.
Since the payment is towards rent to an individual and TDS has been deducted at 10% (₹20,000 on ₹2,00,000), if the TDS has been deducted at the normal applicable rate, no specific remark is required while reporting this transaction in the quarterly TDS return.
Remarks are generally selected only in specific cases such as lower deduction, non-deduction or other applicable exceptions.
Hello sir,
I HAVE A PROBLEM, i.e. TDS deducted but not paid in current due date what remarks to income tax in return filling
please, reply
There is no separate remark code in the return for late deposit of TDS. If tax is deducted but not paid by the due date, interest becomes payable until the date of deposit. The return can only be regularised once the challan is paid, after which the details must be updated. In every such case, interest will invariably apply.
In 27EQ Return Non deduction reason available in Traces G,H and I. you not specified under 27EQ. Please update and give latest updates
We have updated the list to include the relevant non-deduction reasons under Form 27EQ, including codes G, H, and I as available in TRACES.