TDS Codes for Section 393(2) Payments to Non-Residents New Income Tax Act 2025
Section 393(2) — Payments to Non-Residents: 1039–1057
TDS Codes for Section 393(2) Payments to Non-Residents New Income Tax Act 2025
| Code | New Section (Act 2025) | Nature of Payment | Old Section (Act 1961) | Rate |
|---|---|---|---|---|
| C — PAYMENTS TO NON-RESIDENTS | Section 393(2) | Form 144 | ||||
| 1039 | 393(2)[Sl.1] | Income of non-resident sportsman (incl. athlete) or entertainer (not a citizen of India), or non-resident sports association/institution | 195 | Treaty/Act |
| 1040 | 393(2)[Sl.2] | Interest on foreign currency borrowing — loan agreement or LT infra bond issued 1 Jul 2012 to 30 Jun 2023 | 194LC | 5% |
| 1041 | 393(2)[Sl.3] | Interest on Rupee Denominated Bond borrowed outside India — issued before 1 Jul 2023 | 194LC | 5% |
| 1042 | 393(2)[Sl.4.E(a)] | Interest on LT bond/Rupee Denominated Bond listed only on IFSC stock exchange — issued 1 Apr 2020 to 30 Jun 2023 | 194LC | 4% |
| 1043 | 393(2)[Sl.4.E(b)] | Interest on LT bond/Rupee Denominated Bond listed only on IFSC stock exchange — issued on or after 1 Jul 2023 | 194LC | 9% |
| 1044 | 393(2)[Sl.5] | Interest paid by infrastructure debt fund (Schedule VII, Sl. 46) to a non-resident or foreign company | 194LB | 5% |
| 1045 | 393(2)[Sl.6.E(a)] | Business Trust distributed income — nature per Schedule V [Sl. 3.B(a)] — to non-resident unit holder | 194LBA | 5% |
| 1046 | 393(2)[Sl.6.E(b)] | Business Trust distributed income — nature per Schedule V [Sl. 3.B(b)] — to non-resident unit holder | 194LBA | 10% |
| 1047 | 393(2)[Sl.7] | Business Trust distributed income — nature per Schedule V [Sl. 4] — to non-resident unit holder | 194LBA | 10% |
| 1048 | 393(2)[Sl.8] | AIF (Section 224) income to non-resident unit holder — non-exempt portion only | 194LBB | 10% |
| 1049 | 393(2)[Sl.9] | Securitisation Trust (Section 221) income to non-resident investor | 194LBC | 30% |
| 1050 | 393(2)[Sl.10] | Income from units of specified Mutual Fund or specified company — to non-resident | 196A | 10% |
| 1051 | 393(2)[Sl.11] | Income in respect of units of Offshore Fund (Section 208) | 196B | 10% |
| 1052 | 393(2)[Sl.12] | LTCG on transfer of Offshore Fund units (Section 208) | 196B | 10% |
| 1053 | 393(2)[Sl.13] | Interest or Dividends on bonds or Global Depository Receipts (Section 209) — non-resident | 196C | 10% |
| 1054 | 393(2)[Sl.14] | LTCG on transfer of bonds or Global Depository Receipts (Section 209) — non-resident | 196C | 10% |
| 1055 | 393(2)[Sl.15] | Income from securities (Section 210(1) [Sl.1]) — Foreign Institutional Investor | 196D | 20% |
| 1056 | 393(2)[Sl.16] | Income from securities (Section 210(1) [Sl.1]) — Specified Fund (Schedule VI, Note 1(g)) | 196D | 10% |
| 1057 | 393(2)[Sl.17] | Any interest (other than Sl. 2–5) or any other sum chargeable under this Act — not salary — to any non-resident or foreign company | 195 | Rate in Force ( Income Act/DTAA) |
Note that codes 1058–1067 (“any person” codes) and code 1004 (EPF withdrawal) also appear in Form 144 where the payee is a non-resident.
The “any person” codes (1058–1067) cover both resident and non-resident payees.
e.g If a non-resident wins a lottery in India or receives a partner payment from an Indian firm, the same codes 1058–1067 apply and are reported in Form 144.
Similarly, code 1004 (EPF withdrawal) is used in Form 144 when a non-resident employee withdraws their provident fund balance.
Related Post
Section 393 Income Tax Act 2025 Tax to be deducted at source.
for more refer income tax website click here
Pingback: TaxHeal - GST and Income Tax Complete Guide Portal
Pingback: Understanding TDS on Sale of Property in India by NRIs