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

The ‘Remarks’ column in the TDS/TCS Return is used when either a higher or lower deduction is applicable. If a standard rate is being used, the ‘Remarks’ column normally does not apply. This article explains the usage of the ‘Remarks’ column in TDS Returns.

Form 24Q – Salary Payments

Situation	Remarks Code
Lower deduction due to Section 197 certificate	A
No deduction due to Section 197 certificate	B
Higher TDS due to non-availability of PAN	C

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Form 26Q – Domestic Non-Salary Payments

Situation	Remarks Code
Lower deduction due to Section 197 certificate	A
No deduction due to Section 197 certificate (allowed only for specified sections)	B
Higher TDS due to invalid / unavailable PAN (PANAPPLIED, PANINVALID, PANNOTAVBL)	C
Transporter payments with valid PAN	T
Payment below threshold limit (no TDS required)	Y
Software payments – No TDS in specified cases (Section 194J)	S
Declaration under Section 197A(1F)	Z

Sections eligible for “B” (No deduction under 197):
194, 194A, 194EE, 193, 194DA, 192A, 194I(a), 194I(b), 194D

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Form 27Q – Payments to Non-Residents

Situation	Remarks Code
Lower deduction due to Section 197 certificate	A
No deduction due to Section 197 certificate (specified sections only)	B
Higher TDS due to invalid / unavailable PAN	C
Software payments – No TDS in certain cases (Section 195)	S

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Form 27EQ – TCS Returns

Situation	Remarks Code
Lower collection under Section 206C(9)	A
No collection under Section 206C	B
Higher TCS due to invalid / unavailable PAN (Section 206CC)	C

Applicable for statements from FY 2017-18 onwards

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