Form 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.
When tax was not deducted (or collected) or was short-deducted, the person responsible can avoid being treated as an assessee in default if the payee has already returned the income and paid the tax on it, and an accountant certifies that. Form No. 149 is that route for deduction and Form No. 150 for collection. This guide explains both as printed in 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.
Under rule 221, the certificate of an accountant under section 398(2) is furnished in Form No. 149 for non-deduction or short deduction of tax, and in Form No. 150 for non-collection or short collection of tax, to the Director General of Income-tax (Systems) or the person authorised by him. The accountant must be one defined in section 515(3)(b). The rule and the forms print no time limit. Interest under section 398(3)(a) is asked for in the forms; no rate is given here.
The section behind the forms
Section 398(1) of the Income-tax Act, 2025 deems a person who is required to deduct or collect tax, and does not, or does not pay it, to be an assessee in default. Under sub-section (2), a person who fails to deduct (or, for the goods in section 394(1), Table serial numbers 1 to 5 and 9, fails to collect) is not deemed to be an assessee in default if the payee or buyer has furnished the return of income under section 263, taken the amount into account in computing income in that return, and paid the tax due on the income declared, and the person furnishes a certificate to this effect from an accountant in the prescribed form. Sub-section (3)(a) makes the person liable for simple interest on the tax; sub-section (3)(c) says where the person is not deemed in default under sub-section (2), the first-stage interest runs only up to the date the payee furnishes the return. The detail is in the post on section 398 on TDS default.
Rule 221(1) names the forms and sub-rule (2) says both go to the Director General of Income-tax (Systems) or the person authorised by him. See rules 212 and 221. The related declaration for buyers is covered in Form No. 127, and the quarterly statements of tax deducted are in Form No. 140.
If a payer has missed deduction on some payments and the payees have since filed returns, our TDS compliance team can help you assemble the details and check whether the certificate route is open.
Form No. 149: deduction
Form No. 149 is the form for furnishing an accountant's certificate under section 398(2) for a person responsible for deduction of tax not to be deemed an assessee in default.
| Section | Rows | What it asks |
|---|---|---|
| Part A: payer | 1 to 4 | Name, address, PAN (Note 3: for Government deductors, "PANNOTREQD"), TAN if applicable |
| Part A: person responsible for paying | 5 to 7 | Name, address, PAN |
| Part A: payee | 8 to 10 | Name, address, PAN |
| Part A: transactions | 11 to 14 | Amount paid or credited after non-deduction and after short-deduction, with the total; interest under section 398(3)(a) on that total; whether the interest has been paid and, if so, its details |
| Challan details | BSR code, challan serial number and date of deposit, or the Book Identification Number (Note 4: for payment without a challan by a Government deductor) with the first seven digits of the receipt number and the date | |
| Declaration | The person responsible declares that the details are true and correct and that an accountant's certificate that the payee has fulfilled all the conditions in section 398(2) is enclosed as Annexure A |
Annexure A to Form No. 149
The accountant, giving the payee's name, address, PAN and the period, confirms examination of the relevant accounts, documents and records and certifies:
- the payer has paid or credited the listed sums to the payee without deduction of the whole or any part of the tax, with nature of payment, date, the Table number and serial number of section 393 under which tax was deductible, amount, amount of tax deductible, and the amount and date of deduction, if any;
- the payee has furnished the return of income for the tax year relevant to the payment, with nine details: date of filing, acknowledgement number, taxable income on which tax was not deducted (whole or part), other taxable income, total taxable income, tax due on each of the first two, total tax due, and taxes paid as per the return;
- the payee has taken the sum into account in the return, with the head of income, gross receipt and taxable income under the head;
- the information is true and correct and nothing relevant has been concealed or withheld; and
- neither the accountant nor any partner is a director, partner or employee of the entities or their associated concerns.
The verification says that any statement proved incorrect or false will render the accountant liable for penal or other consequences as prescribed in law. The certificate is given by a chartered accountant within the meaning of the Chartered Accountants Act, 1949, or a person entitled under Chapter X of the Companies Act, 2013 to be appointed an auditor of companies registered in the State; these are other laws, so check them where relevant.
Form No. 150: collection
Form No. 150 mirrors Form No. 149 for a person responsible for collecting tax under section 394(1) (Table, serial numbers 1 to 5 and 9).
| Section | Rows | What it asks |
|---|---|---|
| Part A: seller | 1 to 4 | Name, address, PAN, TAN |
| Part A: person responsible for collecting tax | 5 to 7 | Name, address, PAN |
| Part A: buyer | 8 to 10 | Name, address, PAN |
| Part A: transactions | 11 to 14 | Amount received from or debited to the buyer after non-collection and short-collection, with the total; interest under section 398(3)(a); whether paid, with details |
| Challan details and declaration | As in Form No. 149, with the declaration referring to the seller |
Annexure A to Form No. 150 is the certificate of the accountant on the buyer, licensee or lessee. It has the same structure: the seller, licensor or lessor has received or debited sums without collecting tax, with the serial number of section 394 under which tax was collectible; the buyer has furnished the return of income, with the date, acknowledgement number, taxable income per return, tax due and tax paid; the sum has been taken into account in the return, by head of income; the information is true; and the accountant is not a director, partner or employee of the entities. The same verification and Notes on who may certify apply.
Points to note
| Point | From the text |
|---|---|
| Who certifies | An accountant as defined in section 515(3)(b) (rule 221(1)) |
| Where it goes | The Director General of Income-tax (Systems) or his authorised person (rule 221(2)) |
| Time limit | None printed in the rule or forms |
| Interest | Rows 12 to 14 ask for the interest under section 398(3)(a) and whether it was paid; the section sets the rate |
| Government deductors and collectors | PAN "PANNOTREQD"; Book Identification Number if payment was made without a challan |
An example
Zenith Constructions Limited paid a contractor, Rajiv Interiors, a sum without deducting tax on it. Later it learns that the contractor filed his return, included the receipt and paid the tax due. Zenith's accountant examines the contractor's records and issues the certificate in Annexure A to Form No. 149, recording the date of the return, its acknowledgement number and the taxes paid. Zenith's authorised person fills Part A, enters the interest under section 398(3)(a) and the challan details if it has been paid, and sends the form to the Director General of Income-tax (Systems).
Need help with a deduction or collection default?
Whether the certificate route is open depends on the payee's return, the tax paid and the dates. Our TDS compliance team can help you build the schedule of payments, compute the interest and prepare the form with the accountant.
Key takeaways
- Form No. 149 covers non-deduction or short deduction; Form No. 150 covers non-collection or short collection under section 394(1) Table serial numbers 1 to 5 and 9.
- Both support the plea under section 398(2) that the person is not an assessee in default.
- The payee or buyer must have filed the return, taken the sum into account and paid the tax due.
- Both go to the Director General of Income-tax (Systems) or his authorised person; no time limit is printed.
- Annexure A is the accountant's certificate, with a verification and a statement of independence.
Read next
- Rules 212 and 221: buyer declaration and accountant certificate
- Section 398: TDS default
- Form No. 127: buyer's declaration for goods without collection of tax
- Form Nos. 102 and 160: credit of tax deducted and refund claim under section 434
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 4 October 2026. It explains the words of the forms and rules 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.