Reason for Non-Deduction / Lower / Higher TDS Deduction With Code

Published by Team@HostBooks at Last Updated on August 9th, 2023 at 2:32 pm Published on December 18, 2017

Reason for Non Deduction / Lower /Higher Deduction 24Q

Particulars	Code
In case of lower deduction on account of certificate under section 197	A
In case of no deduction on account of certificate under section 197	B
In case of deduction of tax at higher rate due to non-availability of PAN. TDS deducted amount in deductee details should not be less than 20% of Amount paid/ credited in this case. ‘C’ remark is allowed only if deductee PAN quoted is structurally invalid (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”).	C

Reason for Non Deduction / Lower /Higher Deduction 26 Q

Particulars	Code
In case of lower deduction/no deduction on account of certificate under section 197	A
In case of no deduction on account of declaration under section 197A. Allowed only for section 194, 194A, 194EE, 193, 194DA, 192A, 194I(a), 194I(b) & 194D (no deduction/lower deduction)	B
In case of deduction of tax at higher rate due to non-availability of PAN ‘C’ remark is allowed only if deductee PAN quoted is structurally invalid. (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”).	C
In case of Transporter transaction and valid PAN is provided	T
Transaction where tax has not been deducted as amount paid/credited to the vendor/party has not exceeded the threshold limit (as per the provisions of income tax act). Applicable for sections 193,194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194G, 194H, 194I, 194J, 194LA.	Y
For software acquired under section 194J (Notification 21/2012). Applicable from FY 2012-13 onwards.	S
In case of no deduction on account of payment under section 197A (1F). Applicable from FY 2012-13 onwards.	Z

Reason for Non Deduction / Lower /Higher Deduction 27Q

Particulars	Code
In case of lower deduction or no deduction on account of certificate under section 197	A
In case of no deduction on account of declaration under section 197A	B
In case of deduction of tax at higher rate due to non-availability of PAN ‘C’ remark is allowed only if deductee PAN quoted is structurally invalid. (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”). If the section code in the deductee details is 194LC then “C” remark is not applicable i.e., deduction of tax at higher rate is not applicable due to non-availability of deductee PAN.	C
For software acquired under section 195 (Notification 21/2012). Applicable from FY 2012-13 onwards.	S

Reason for Non Deduction / Lower /Higher Deduction 27EQ

Particulars	Code
In case of lower collection as per section 206C (9)	A
Non collection as per section 206C (1A)	B
In case of deduction of tax at higher rate due to non-availability of PAN ‘C’ remark is allowed only if collectee PAN quoted is structurally invalid. (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”). Applicable only for Section 206CC and statements pertains to FY 2017-18 onwards.

TDS RATE CHART FY: 2023-24 (AY: 2024-25)

Section	Nature of payment	Threshold	Indv./HUF	Others
		Rs.	TDS Rate (%)
192	Salaries	–	Normal slab rate	–
192A	Premature withdrawal from EPF	50000	10	–
193	Interest on securities 2023 Budget Update: TDS exemption on interest from listed debentures has been removed, necessitating tax deduction on the interest earned from such securities	8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds – 10000 Debenture- 5000 Other: No limit	10	10
194	Dividends	5000	10	10
194A	Interest (Banking co., co-operative society engaged in banking, post office)	40000	10	10
194A	Interest (Banking co., co-operative society engaged in banking, post office), if payee is senior citizen	50000	10	10
194A	Interest (Any other)	5000	10	10
194B	Winning from lotteries	10000	30	30
194BA	Winning from Online Games	Nil	30	30
194BB	Winning from Horse race	10000	30	30
194C	Contractor – Single transaction	30000	1	2
194C	Contractor – During the F.Y.	100000	1	2
194C	Transporter (44AE) declaration with PAN	–	–	–
194D	Insurance commission (15G-15H allowed)	15000	5	10
194DA	Life insurance policy	100000	5	5
194E	Non-resident sportsmen or sports association	–	20	20
194EE	NSS	2500	10	10
194F	Repurchase units by MFs	–	20	20
194G	Commission-Lottery	15000	5	5
194H	Commission/Brokerage	15000	5	5
194I	Rent of Land and Building – F & F	240000	10	10
194I	Rent of Plant/Machinery/Equipment	240000	2	2
194IB	Rent by Individual/HUF to a resident (wef 01.06.2017)	50000 pm	5	5
194IA	Transfer of certain immovable property other than agriculture land	50 lakh	1	1
194J	Professional Fees/Technical Fees/ etc.	30000	10	10
194J	Payment to call centre operator (wef 01.06.2017)	30000	2	2
194J	Director’s fees	–	10	10
194LA	Compensation on transfer of certain immovable property other than agriculture land	250000	10	10
194LA	Immovable property (TDS exempted under RFCTLARR Act wef 01.04.2017)	–	–	–
194LB	Income by way of interest from infrastructure debt fund (non-resident) [TDS + SC + HEC]	–	5	5
194LBA	Income from units of business trust (if recepient is resident in India)	–	10	10
194LBA	Income from units of business trust (if recepient is non-resident) [TDS + SC + HEC]	–	5	5
194LBA	Distribution of rental income to unit holders (if recepient is non-resident) [TDS + SC + HEC]	–	30	40
194LBB	Income in respect of units of investment fund (if payee is resident)	–	10	10
194LBB	Income in respect of units of investment fund (if payee is non-resident) [TDS + SC + HEC]	–	30	40
194LBC	Income in respect of investment in securitization fund (if payee is resident)	–	25	30
194LBC	Income in respect of investment in securitization fund (if payee is non-resident) [TDS + SC + HEC]	–	30	40
194LC	Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012 [TDS + SC + HEC]	–	5	5
194LD	Interest on certain bonds from Govt. securities (from 01.06.2013) [TDS + SC + HEC]	–	5	5
194M	Certain payments by Individual/HUF	50 lakh	5	5
194N	Payment of certain amount in cash	1 Crore	–	2

In Case, TDS Rate is lower than 20% TDS Rate without PAN will be 20% flat (The above list covers most of the sections applicable for domestic transactions)

TCS RATE CHART FY: 2023-24 (AY: 2024-25)

Section	Nature of Payment	TCS Rate (%)
206C	Scrap	1%
206C	Tendu Leaves	5%
206C	Timber obtained under a forest lease or other mode	2.5%
206C	Any other forest produce not being a timber or tendu leave	2.5%
206C	Alcoholic Liquor for human consumption	1%
206C	Parking lot, toll plaza, mining and quarrying (other than mining and quarrying of mineral oil, petroleum and natural gas)	2%
206C	Minerals, being coal or lignite or iron ore (applicable from July 1, 2012)	1%
206C	Sale of motor vehicle of the value exceeding Rs. 10 Lacs (wef 01.06.2016) Motor vehicle clause not applicable on Central Government, a State Government, an embassy, a High Commission, Legation, Commission, Consulate and the Trade Representation of a foreign State; Local Authority; a Public Sector Company which is engaged in the business of carrying passengers (wef 01.04.2017)	1%
Section 206C(1G)	Foreign remittances made under the Reserve Bank of India’s Liberalized Remittance Scheme.	5%

TCS Rates (without PAN): double of the TCS rate as above or 5% (whichever is higher) (This list covers the sections that mainly applicable for domestic transactions)

Note:

Surcharge (SC) and Heath and Education Cess (HEC) is not deductible on payments made to residents, other than salary.

In case of non-resident, surcharge (SC) and Health and Education Cess (HEC) would be applicable on TDS.

What does “PANNOTAVBL” mean?

TDS is deducted on a payment for which PAN (Permanent Account Number) is not provided, the TDS certificate mentions “pannotavabl”.

Team@HostBooks

Arpita Bora is leading the content writing team at HostBooks Limited. She has pursued her Masters in Commerce. With over 4.5 years of experience in technical and creative writing, she specializes in both long and short-form digital content.