{"id":2805,"date":"2017-12-18T11:04:07","date_gmt":"2017-12-18T11:04:07","guid":{"rendered":"http:\/\/172.17.1.140\/programming\/tds-kw\/?p=880"},"modified":"2023-08-09T14:32:17","modified_gmt":"2023-08-09T09:02:17","slug":"option-reason-for-non-deduction-lower-higher-tds","status":"publish","type":"post","link":"https:\/\/www.hostbooks.com\/in\/hb\/hb-tds-faq\/option-reason-for-non-deduction-lower-higher-tds\/","title":{"rendered":"Reason for Non-Deduction \/ Lower \/ Higher TDS Deduction With Code"},"content":{"rendered":"

\"Reason<\/p>\n

\n

Reason for Non Deduction \/ Lower \/Higher Deduction 24Q<\/h2>\n\n\n\n\n\n\n\n
Particulars<\/th>\nCode<\/th>\n<\/tr>\n<\/thead>\n
In case of lower deduction on account of certificate under section 197<\/td>\nA<\/td>\n<\/tr>\n
In case of no deduction on account of certificate under section 197<\/td>\nB<\/td>\n<\/tr>\n
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. \u2018C\u2019 remark is allowed only if deductee PAN quoted is structurally invalid (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”).<\/td>\nC<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Reason for Non Deduction \/ Lower \/Higher Deduction 26 Q<\/h2>\n\n\n\n\n\n\n\n\n\n\n\n
Particulars<\/th>\nCode<\/th>\n<\/tr>\n<\/thead>\n
In case of lower deduction\/no deduction on account of certificate under section 197<\/td>\nA<\/td>\n<\/tr>\n
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)<\/td>\nB<\/td>\n<\/tr>\n
In case of deduction of tax at higher rate due to non-availability of PAN \u2018C\u2019 remark is allowed only if deductee PAN quoted is structurally invalid. (i.e. “PANAPPLIED”, “PANINVALID” or “PANNOTAVBL”).<\/td>\nC<\/td>\n<\/tr>\n
In case of Transporter transaction and valid PAN is provided<\/td>\nT<\/td>\n<\/tr>\n
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.<\/td>\nY<\/td>\n<\/tr>\n
For software acquired under section 194J (Notification 21\/2012). Applicable from FY 2012-13 onwards.<\/td>\nS<\/td>\n<\/tr>\n
In case of no deduction on account of payment under section 197A (1F). Applicable from FY 2012-13 onwards.<\/td>\nZ<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Reason for Non Deduction \/ Lower \/Higher Deduction 27Q<\/h2>\n\n\n\n\n\n\n\n\n
Particulars<\/th>\nCode<\/th>\n<\/tr>\n<\/thead>\n
In case of lower deduction or no deduction on account of certificate under section 197<\/td>\nA<\/td>\n<\/tr>\n
In case of no deduction on account of declaration under section 197A<\/td>\nB<\/td>\n<\/tr>\n
In case of deduction of tax at higher rate due to non-availability of PAN \u2018C\u2019 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.<\/td>\nC<\/td>\n<\/tr>\n
For software acquired under section 195 (Notification 21\/2012). Applicable from FY 2012-13 onwards.<\/td>\nS<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Reason for Non Deduction \/ Lower \/Higher Deduction 27EQ<\/h2>\n\n\n\n\n\n\n\n
Particulars<\/th>\nCode<\/th>\n<\/tr>\n<\/thead>\n
In case of lower collection as per section 206C (9)<\/td>\nA<\/td>\n<\/tr>\n
Non collection as per section 206C (1A)<\/td>\nB<\/td>\n<\/tr>\n
In case of deduction of tax at higher rate due to non-availability of PAN \u2018C\u2019 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.<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n

TDS RATE CHART FY: 2023-24 (AY: 2024-25)<\/u><\/h4>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Section<\/strong><\/td>\nNature of payment<\/strong><\/td>\nThreshold<\/strong><\/td>\nIndv.\/HUF<\/strong><\/td>\nOthers<\/strong><\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nRs. <\/td>\nTDS Rate (%)<\/td>\n<\/tr>\n
192<\/td>\nSalaries<\/td>\n–<\/td>\nNormal slab rate<\/td>\n–<\/td>\n<\/tr>\n
192A<\/td>\nPremature withdrawal from EPF<\/td>\n50000<\/td>\n10<\/td>\n–<\/td>\n<\/tr>\n
193<\/td>\nInterest 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 <\/td>\n8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds \u2013 10000 Debenture- 5000 Other: No limit <\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194<\/td>\nDividends<\/td>\n5000<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194A<\/td>\nInterest (Banking co., co-operative society engaged in banking, post office)<\/td>\n40000<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194A<\/td>\nInterest (Banking co., co-operative society engaged in banking, post office), if payee is senior citizen<\/td>\n50000<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194A<\/td>\nInterest (Any other)<\/td>\n5000<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194B<\/td>\nWinning from lotteries<\/td>\n10000<\/td>\n30<\/td>\n30<\/td>\n<\/tr>\n
194BA<\/td>\nWinning from Online Games<\/td>\nNil<\/td>\n30<\/td>\n30<\/td>\n<\/tr>\n
194BB<\/td>\nWinning from Horse race<\/td>\n10000<\/td>\n30<\/td>\n30<\/td>\n<\/tr>\n
194C<\/td>\nContractor – Single transaction<\/td>\n30000<\/td>\n1<\/td>\n2<\/td>\n<\/tr>\n
194C<\/td>\nContractor – During the F.Y.<\/td>\n100000<\/td>\n1<\/td>\n2<\/td>\n<\/tr>\n
194C<\/td>\nTransporter (44AE) declaration with PAN<\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
194D<\/td>\nInsurance commission (15G-15H allowed)<\/td>\n15000<\/td>\n5<\/td>\n10<\/td>\n<\/tr>\n
194DA<\/td>\nLife insurance policy<\/td>\n100000<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194E<\/td>\nNon-resident sportsmen or sports association<\/td>\n–<\/td>\n20<\/td>\n20<\/td>\n<\/tr>\n
194EE<\/td>\nNSS<\/td>\n2500<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194F<\/td>\nRepurchase units by MFs<\/td>\n–<\/td>\n20<\/td>\n20<\/td>\n<\/tr>\n
194G<\/td>\nCommission-Lottery<\/td>\n15000<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194H<\/td>\nCommission\/Brokerage<\/td>\n15000<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194I<\/td>\nRent of Land and Building – F & F<\/td>\n240000<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194I<\/td>\nRent of Plant\/Machinery\/Equipment<\/td>\n240000<\/td>\n2<\/td>\n2<\/td>\n<\/tr>\n
194IB<\/td>\nRent by Individual\/HUF to a resident  (wef 01.06.2017)<\/td>\n50000 pm<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194IA<\/td>\nTransfer of certain immovable property other than agriculture land<\/td>\n50 lakh<\/td>\n1<\/td>\n1<\/td>\n<\/tr>\n
194J<\/td>\nProfessional Fees\/Technical Fees\/ etc.<\/td>\n30000<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194J<\/td>\nPayment to call centre operator (wef 01.06.2017)<\/td>\n30000<\/td>\n2<\/td>\n2<\/td>\n<\/tr>\n
194J<\/td>\nDirector’s fees<\/td>\n–<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194LA<\/td>\nCompensation on transfer of certain immovable property other than agriculture land<\/td>\n250000<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194LA<\/td>\nImmovable property (TDS exempted under RFCTLARR Act wef 01.04.2017)<\/td>\n–<\/td>\n–<\/td>\n–<\/td>\n<\/tr>\n
194LB<\/td>\nIncome by way of interest from infrastructure debt fund (non-resident)      [TDS + SC + HEC]<\/td>\n–<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194LBA<\/td>\nIncome from units of business trust (if recepient is resident in India)<\/td>\n–<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194LBA<\/td>\nIncome from units of business trust (if recepient is non-resident)      [TDS + SC + HEC]<\/td>\n–<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194LBA<\/td>\nDistribution of rental income to unit holders (if recepient is non-resident)     [TDS + SC + HEC]<\/td>\n–<\/td>\n30<\/td>\n40<\/td>\n<\/tr>\n
194LBB<\/td>\nIncome in respect of units of investment fund (if payee is resident)<\/td>\n–<\/td>\n10<\/td>\n10<\/td>\n<\/tr>\n
194LBB<\/td>\nIncome in respect of units of investment fund (if payee is non-resident)     [TDS + SC + HEC]<\/td>\n–<\/td>\n30<\/td>\n40<\/td>\n<\/tr>\n
194LBC<\/td>\nIncome in respect of investment in securitization fund (if payee is resident)<\/td>\n–<\/td>\n25<\/td>\n30<\/td>\n<\/tr>\n
194LBC<\/td>\nIncome in respect of investment in securitization fund (if payee is non-resident)   [TDS + SC + HEC]<\/td>\n–<\/td>\n30<\/td>\n40<\/td>\n<\/tr>\n
194LC<\/td>\nIncome 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]<\/td>\n–<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194LD<\/td>\nInterest on certain bonds from Govt. securities (from 01.06.2013)     [TDS + SC + HEC]<\/td>\n–<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194M<\/td>\nCertain payments by Individual\/HUF<\/td>\n50 lakh<\/td>\n5<\/td>\n5<\/td>\n<\/tr>\n
194N<\/td>\nPayment of certain amount in cash<\/td>\n1 Crore<\/td>\n–<\/td>\n2<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In Case, TDS Rate is lower than 20% TDS Rate without PAN will be 20% flat<\/em><\/u><\/em> (The above list covers most of the sections applicable for domestic transactions)<\/p>\n<\/div>\n

\n

TCS RATE CHART FY: 2023-24 (AY: 2024-25)<\/u><\/h4>\n\n\n\n\n\n\n\n\n\n\n\n\n
Section<\/strong><\/u><\/td>\nNature of Payment<\/strong><\/u><\/td>\nTCS Rate (%)<\/strong><\/u><\/td>\n<\/tr>\n
206C<\/td>\nScrap<\/td>\n1%<\/td>\n<\/tr>\n
206C<\/td>\nTendu Leaves<\/td>\n5%<\/td>\n<\/tr>\n
206C<\/td>\nTimber obtained under a forest lease or other mode<\/td>\n2.5%<\/td>\n<\/tr>\n
206C<\/td>\nAny other forest produce not being a timber or tendu leave<\/td>\n2.5%<\/td>\n<\/tr>\n
206C<\/td>\nAlcoholic Liquor for human consumption<\/td>\n1%<\/td>\n<\/tr>\n
206C<\/td>\nParking lot, toll plaza, mining and quarrying (other than mining and quarrying of mineral oil, petroleum and natural gas)<\/td>\n2%<\/td>\n<\/tr>\n
206C<\/td>\nMinerals, being coal or lignite or iron ore (applicable from July 1, 2012)<\/td>\n1%<\/td>\n<\/tr>\n
206C<\/td>\nSale 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)<\/td>\n1%<\/td>\n<\/tr>\n
Section 206C(1G)<\/td>\nForeign remittances made under the Reserve Bank of India’s Liberalized Remittance Scheme.<\/td>\n5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

TCS Rates (without PAN): double of the TCS rate as above or 5% (whichever is higher)<\/em><\/u><\/em> (This list covers the sections that mainly applicable for domestic transactions)<\/p>\n<\/div>\n

Note:<\/strong><\/u><\/strong><\/p>\n
    \n
  1. Surcharge (SC) and Heath and Education Cess (HEC) is not deductible on payments made to residents, other than salary.<\/li>\n<\/ol>\n
      \n
    1. In case of non-resident, surcharge (SC) and Health and Education Cess (HEC) would be applicable on TDS.<\/li>\n<\/ol>\n

      What does \u201cPANNOTAVBL\u201d mean?<\/p>\n

      TDS is deducted on a payment for which PAN (Permanent Account Number) is not provided, the TDS certificate mentions \u201cpannotavabl\u201d.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      Reason for Non Deduction \/ Lower \/Higher Deduction 24Q Particulars Code In case of lower [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[248],"tags":[],"yst_prominent_words":[2918,4795],"_links":{"self":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/2805"}],"collection":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/comments?post=2805"}],"version-history":[{"count":24,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/2805\/revisions"}],"predecessor-version":[{"id":16891,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/2805\/revisions\/16891"}],"wp:attachment":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/media?parent=2805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/categories?post=2805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/tags?post=2805"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/yst_prominent_words?post=2805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}