Form 144 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form 144 is the quarterly statement of tax deducted on payments other than salary to certain non-residents. This article describes it as printed, as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked.
Rule 219(1), Table, second row, requires a statement in Form 144 for deduction under sections 392(7), 393(2) and 393(3) in respect of a deductee who is a non-resident (not being a company or a foreign company) or a resident but not ordinarily resident. It is delivered to the Director General of Income-tax (Systems) or the person authorised by him, as per section 397(3)(b), by the due dates in rule 219(4): 31 July, 31 October, 31 January and 31 May. Form 144 has Part A, Part B and an annexure with columns A to AK.
The rule and the sections
Section 397(3)(b) provides for the statement; see section 397. Section 393(2) is the part of the single TDS section that deals with payments to non-residents; see section 393 on payments to non-residents. Rule 219(4) gives the quarterly due dates (30th June quarter by 31st July; 30th September by 31st October; 31st December by 31st January; 31st March by 31st May of the financial year immediately following the tax year of deduction). See rule 219. Where the non-resident has no PAN, rule 217 sets out when the higher rate in section 397(2)(b)(i) does not apply, on the deductee furnishing the details and documents it lists (name, e-mail, contact number, address abroad, a residence certificate if the foreign law provides for one, and a tax identification number); see rule 217.
Related forms are Form 145 (information for payments to non-residents), Form 140 (other non-salary payments) and Form 138.
Payers of royalties, interest, technical fees and similar sums abroad have to match this statement with their remittance records; our NRI tax filing team can help payers and recipients get it right.
Part A: particulars of the deductor
The heading is "Quarterly statement of deduction of tax under section 397(3)(b) in respect of payments other than salary made to non-residents for quarter ended ... (Tax Year)". Part A has sixteen rows, as in Forms 138 and 140: type of deductor (Government or Non-Government); name; address; Permanent Account Number (Note 3); Tax Deduction and Collection Account Number; e-mail identity; contact number; tax year; whether a statement was filed earlier for the quarter and the return receipt number of the original; for a Government deductor, the AIN of the PAO, DTO or CDDO (rows 1 to 11); and the person responsible for deduction of tax, applicable for a non-individual deductor: name, address, PAN, e-mail identity, contact number (rows 12 to 16).
Part B: tax deducted and paid
Part B, item 1, is the table of tax deducted and paid to the credit of the Central Government, with columns A to K: serial number; (B) total tax (Note 4); (C) total interest; (D) total fee (Note 5, fee under section 427 for late filing); (E) total penalty or others; (F) total amount deposited as per challan or adjusted through book adjustment, (B + C + D + E) (Note 6); (G) mode of payment ("B" for book adjustment by Government deductors, "C" for others); (H) BSR code or receipt number of Form 137; (I) date of deposit or transfer voucher; (J) challan serial number or DDO serial number of Form 137; (K) minor head. Item 2 refers to the Annexure. The Declaration is by the person responsible for deducting tax.
The Annexure: deductee-wise break-up of TDS
The heads of this table are printed broken word by word and are rebuilt here from the column letters. Note that the letters in the print run W, then Z; the letters X and Y do not appear.
| Columns | Particulars |
|---|---|
| A to D | Serial number; challan reference number; PAN of the deductee, if available (Note 10); name |
| E to H | Tax identification number or unique identification number issued by the country of residence; address in the country of residence; e-mail; contact number |
| I to K | Status code (Note 11); section code (Note 13); nature of remittance (Note 14) |
| L to N | Country to which the remittance is made; whether the deductee is opting out of the taxation regime under section 202(1); date of payment or credit |
| O to R | Amount paid or credited; whether it is grossed up as per section 393(10) (Yes or No); whether the amount of cash withdrawal exceeds Rs. 1 crore, as referred to in section 393(3) (persons other than co-operative societies); whether it exceeds Rs. 3 Crore (co-operative societies) |
| S to W | Total tax deducted (Note 12); whether it has been deposited; total tax deposited; date of deduction; rate at which tax was deducted |
| Z to AC | Whether the rate of TDS is as per the Act (a) or the double taxation avoidance agreement (b); unique acknowledgement number of the corresponding Form 145, if applicable; reason for non-deduction, lower deduction or higher deduction (Notes 1 to 9); certificate number or numbers of the certificate under section 395(1) or 395(2) |
| AD to AK | Two blocks of four columns (amount of tax deposited, BSR code of the bank, date of payment, challan serial number) for payments covered in section 393(3) |
Notes
| Note | Content |
|---|---|
| 1 to 9 | Reason codes: A, lower or no deduction on a certificate under section 395(1) and 395(2); C, higher rate under section 397(2) for non-furnishing of PAN; G, no deduction on interest paid by an Offshore Banking Unit as per section 393(8); H, no deduction under section 393(4) on income paid to a specified fund exempt under Schedule VI; I, no deduction under section 393(4) on capital gains on securities referred to in section 210 paid to a Foreign Institutional Investor; N, payment to a person in section 393(4) ; O, no deduction as per section 393(4) ; Y, payment below the threshold limit in the Act; Z, notification under section 400(1) |
| 10 | For deductees covered under rule 217, write the PAN as "PANNOTAVBL" |
| 11 | Status codes: 01 company other than a domestic company; 02 individual; 03 Hindu undivided family; 04 association of persons except one of companies only; 05 association of persons of companies only; 06 co-operative society; 07 firm; 08 body of individuals; 09 artificial juridical person; 10 others |
| 12 | Total tax deducted is the sum of tax, surcharge and health and education cess |
| 13 | Section codes |
| 14 | Nature of remittance, in 19 items |
| 15 | Amounts in rupees |
Section codes (Note 13). Code 1004 is the payment of accumulated balance to an employee under section 392(7), where the payee is any non-resident. Codes 1039 to 1057 correspond to the nineteen rows of the Table in section 393(2): 1039, income of a non-resident sportsman, athlete or entertainer who is not a citizen of India, or a non-resident sports association or institution; 1040 to 1044, interest on monies borrowed from a source outside India (the print gives the issue dates and conditions of each row, to be read in the form); 1045 to 1049, distributed income of business trusts, investment funds and securitisation trusts; 1050, income from units of a specified mutual fund or from the specified company; 1051 and 1052, offshore fund units and their long-term capital gains; 1053 and 1054, interest or dividends and long-term capital gains on bonds or Global Depository Receipts; 1055 and 1056, income from securities of a Foreign Institutional Investor and of a specified fund; 1057, other interest or sum chargeable (not salary). Codes 1058 to 1067 mirror the section 393(3) rows: winnings from lotteries, games, betting, online games and horse races; lottery ticket commission; certain cash payments by banks, co-operative societies and post offices; and payments to a partner of a firm.
Nature of remittance (Note 14). The list has 19 items: winnings from lottery, crossword puzzle, card game or betting; winnings from online games; winnings from horse race; payments to non-resident sportsmen, entertainers or sports associations; interest income; dividend income under section 207(1) ; dividend income under section 207(1) ; income by way of renting or leasing real estate; investment income; long-term capital gains (section 214 or section 197(1)); long-term capital gains under section 198 exceeding one lakh twenty-five thousand rupees; long-term capital gains under section 214 ; short-term capital gains under section 196; other short-term capital gains; commission; fee for technical services or included services; royalty; cash withdrawal; other income.
A short example
Harbor Software Pvt Ltd pays a consultancy fee to a firm abroad during the quarter ended 31st December. It files Form 144 by 31 January: Part A with its details, Part B with the challan, and the Annexure with one row for the payee, entering the payee's tax identification number and address abroad, status code 07, the section code for the payment under section 393(2), the nature of remittance (fee for technical services), the amount, the rate, and the acknowledgement number of the Form 145 if one was filed. The facts are invented; the rate is for the Act and any agreement.
Need help with payments to non-residents?
Choosing the right section code, rate and form for a foreign remittance is where mistakes creep in. If you want the Annexure reviewed against your remittance file before the due date, speak to our NRI tax filing specialists.
Key takeaways
- Form 144 covers sections 392(7), 393(2) and 393(3) for non-residents and residents who are not ordinarily resident.
- Due dates: 31 July, 31 October, 31 January and 31 May.
- The Annexure runs to column AK and asks for foreign address, tax identification number and nature of remittance.
- Section codes 1039 to 1057 mirror the 19 rows of section 393(2).
- For deductees without PAN under rule 217, write "PANNOTAVBL".
Read next
- Form 145: information for payments to non-residents
- Form 146: accountant's certificate for payments to non-residents
- Form 140: quarterly statement of tax deducted on payments other than salary
- Rule 217: non-residents without PAN
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.