With the implementation of the Income-tax Act, 2025, the reporting framework for TDS on payments to non-residents has undergone changes. One important area is the mapping of the Nature of Remittance Code with the applicable Section Code while preparing the quarterly TDS return in Form 144.
While entering the deductee details the appropriate Section Code and corresponding Remittance Code need to be selected based on the nature of payment or income being reported in respect of the non-resident deductee.
Under the new framework, the TDS provisions are consolidated and specific Section Codes are used for reporting different categories of payments. The corresponding remittance code further identifies the nature of remittance being reported.
What is a Remittance Code?
A Remittance Code identifies the nature of payment or income being reported in respect of a non-resident deductee.
Different codes are prescribed for different types of income, including:
- Interest income
- Dividend income
- Investment income
- Long-term capital gains
- Short-term capital gains
- Fees for Technical Services / Fees for Included Services
- Royalty
- Other income
The appropriate code has to be selected while providing the deductee details in the TDS return.
Mapping of Remittance Code with Section Code
| Nature of Remittance | Code | Section Code |
|---|---|---|
| Interest income | 27 | 1040 |
| Interest income | 27 | 1041 |
| Interest income | 27 | 1042 |
| Interest income | 27 | 1043 |
| Interest income | 27 | 1044 |
| Interest income | 27 | 1045 |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | 1046 |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Interest income | 27 | 1048 |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Long term capital gains referred to in section 214 [Table: Sl. No. 2] | 66 | |
| Long term capital gains referred to in section 197(1) | 67 | |
| LTCG other than those specifically listed under Schedule II, Sl. No. 14 and Sl. No. 17 [related to section 10(36) of IT ACT-1961] | 68 | |
| Long term capital gains referred to in section 198 exceeding one lakh twenty-five thousand rupees, | 69 | |
| Short term capital gains referred to in section 196 | 70 | |
| Interest income | 27 | 1049 |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Long term capital gains referred to in section 214 [Table: Sl. No. 2] | 66 | |
| Long term capital gains referred to in section 197(1) | 67 | |
| LTCG other than those specifically listed under Schedule II, Sl. No. 14 and Sl. No. 17 [related to section 10(36) of IT ACT-1961] | 68 | |
| Long term capital gains referred to in section 198 exceeding one lakh twenty-five thousand rupees, | 69 | |
| Short term capital gains referred to in section 196 | 70 | |
| Interest income | 27 | 1050 |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Long term capital gains referred to in section 214 [Table: Sl. No. 2] | 66 | |
| Long term capital gains referred to in section 197(1) | 67 | |
| LTCG other than those specifically listed under Schedule II, Sl. No. 14 and Sl. No. 17 [related to section 10(36) of IT ACT-1961] | 68 | |
| Long term capital gains referred to in section 198 exceeding one lakh twenty-five thousand rupees, | 69 | |
| Short term capital gains referred to in section 196 | 70 | |
| Interest income | 27 | 1051 |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Long Term Capital Gains arising from transfer Transfer of Units reffered to in Section 208 | 71 | 1052 |
| Interest income | 27 | 1053 |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Long-term capital gains arising from the transfer of bonds or Global Depository Receipts referred to in section 209 | 72 | 1054 |
| Interest income | 27 | 1055 |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Long term capital gains referred to in section 214 [Table: Sl. No. 2] | 66 | |
| Long term capital gains referred to in section 197(1) | 67 | |
| LTCG other than those specifically listed under Schedule II, Sl. No. 14 and Sl. No. 17 [related to section 10(36) of IT ACT-1961] | 68 | |
| Long term capital gains referred to in section 198 exceeding one lakh twenty-five thousand rupees, | 69 | |
| Short term capital gains referred to in section 196 | 70 | |
| Interest income | 27 | 1056 |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Long term capital gains referred to in section 214 [Table: Sl. No. 2] | 66 | |
| Long term capital gains referred to in section 197(1) | 67 | |
| LTCG other than those specifically listed under Schedule II, Sl. No. 14 and Sl. No. 17 [related to section 10(36) of IT ACT-1961] | 68 | |
| Long term capital gains referred to in section 198 exceeding one lakh twenty-five thousand rupees, | 69 | |
| Short term capital gains referred to in section 196 | 70 | |
| Interest income | 27 | 1057 |
| Dividend income referred to in the in the section 207(1) [Table: Sl. No.1] | 73 | |
| Dividend income referred to in the section 207(1) [Table: Sl. No.2] | 16 | |
| Investment income | 28 | |
| Long term capital gains referred to in section 214 [Table: Sl. No. 2] | 66 | |
| Long term capital gains referred to in section 197(1) | 67 | |
| LTCG other than those specifically listed under Schedule II, Sl. No. 14 and Sl. No. 17 [related to section 10(36) of IT ACT-1961] | 68 | |
| Long term capital gains referred to in section 198 exceeding one lakh twenty-five thousand rupees, | 69 | |
| Short term capital gains referred to in section 196 | 70 | |
| Fees for Technical Services/ Fees for included services where the agreement is made after the 31st March, 1976 | 21 | |
| Fees for Technical Services/ Fees for included services where the agreement is made after the 29th February, 1964 but before the 1st April, 1976 | 74 | |
| Royalty where the agreement is made after the 31st March, 1976 | 49 | |
| Royalty where the agreement is made after the 31st March, 1961 but before the 1st April, 1976 | 75 | |
| Other income | 99 |
