A variety of Canscora diffusa was placed as a new species by their taxonomical and anatomical characters. Previous studies concluded that Canscora diffusa and its variety were synonymous. C. racemosa was differs from C. diffusa by the presence of limited branches, yellowish 4-angled stem, persistent corolla, stigma longer than stamens, yellow coloured anisomorphic stamens, usually each dichotomous branch ends in a solitary flower, raceme in nature and gynoecium longer than stigma style. Anatomical difference between both the species of Canscora reflects that C. racemosa differs mainly by the presence of trichomes in T.S of stem and leaf sections. Both taxonomical and anatomical studies conclude that the variety of C. diffusa differs from C. diffusa by various characters. Hence, variety of C. diffusa can be treated as a new species and named as Canscora racemosa by their raceme type of inflorescence.