TDS deposit code & TDS return

For a non-resident employee working abroad, select Non-Resident status on the portal, avoid using domestic salary code 1002 or EPF code 1004 for regular salary, and report the transaction through the non-resident return filing stream (Form 144 / 27Q) rather than Form 138 (24Q).

Aashok is correct on the broad direction. Let me add the specific code details for the Income Tax Act 2025 framework:

DEDUCTEE STATUS: Mark as NON-RESIDENT. If the employee is physically outside India for more than 182 days in FY 2026-27, the Section 6 residence test makes them non-resident for that year regardless of where salary is paid from.

PAYMENT CODE UNDER INCOME TAX ACT 2025: Under the new Section 393 framework effective April 1, 2026, non-resident salary payments do NOT use Code 1001 or 1002 (those are for resident salary under Section 392). For non-resident salary, check the NSDL portal for the applicable code in the non-resident withholding table. Code 1002 is for specific resident salary components and Code 1004 maps to EPF/PF - both are wrong for this situation.

Important: if your software still shows 24Q/27Q labels, verify it has mapped the new ITA 2025 payment codes. Filing with incorrect codes will generate portal validation errors on Q1 2026-27 TDS return.

RETURN FORM: File FORM 144 (equivalent of old Form 27Q) for non-resident salary TDS. Do NOT file under Form 138 (old 24Q) which is strictly for resident employees only.

For the full framework on cross-border salary TDS compliance including applicable provisions under Income Tax Act 2025, see [foreign remittance TDS: Form 145, 146 and non-resident compliance guide](https://taxgarden.in/blog/form-15ca-15cb-form-145-146-foreign-remittance-tds-compliance-india-2026).