Form 144 Income Tax Rules 2026 pdf download and Key points
FORM NO. 144
[See rule 219(1) [Table: Sl. No. 2]]
Under the new Income-tax Rules, 2026, Form No. 144 replaces the old Form 27Q. It is governed by Section 397(3)(b) of the Income-tax Act, 2025, and Rule 219 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 144:
1. Purpose of the Form Form 144 is a quarterly TDS statement filed by deductors to report Tax Deducted at Source (TDS) on payments other than salary made to non-residents (such as non-resident Indians, foreign companies, and other non-resident entities). It covers income such as interest, royalty, technical fees, dividends, and other specified payments subject to TDS under Chapter XIX-B of the Act.
2. Applicability (Who Should File)
- Who files: Any deductor (company, firm, partnership, government, individual, etc.) responsible for making non-salary payments to a non-resident on which tax is deductible.
- Is it mandatory? Yes, it is mandatory for any deductor who is required to deduct tax on such payments to file this form for the relevant quarter(s).
3. Frequency and Due Dates Form 144 must be filed quarterly. The specific deadlines are:
- Quarter 1 (Apr – Jun): 31st July of the Financial Year.
- Quarter 2 (Jul – Sep): 31st October of the Financial Year.
- Quarter 3 (Oct – Dec): 31st January of the Financial Year.
- Quarter 4 (Jan – Mar): 31st May of the Financial Year immediately following the Tax Year in which the deduction is made.
4. Mode of Filing and Revisions
- Electronic Filing Only: It is mandatory to furnish Form 144 electronically. It is prepared using the Return Preparation Utility (RPU) and validated through the File Validation Utility (FVU) before being uploaded on the e-filing portal or submitted at a TIN-FC center.
- No Direct Editing: Once successfully submitted and an Acknowledgment Receipt Number (ARN) is generated, the form cannot be edited.
- Correction Statements: To correct any mistakes, the deductor must file a correction statement after the original has been processed by CPC-TDS. This must be done within two years from the end of the tax year in which the statement was required to be delivered.
5. Structure of the Form The statement is systematically divided into specific parts and an annexure:
- Part A (Particulars of Deductor): Captures the Type of Deductor, Name, Address, PAN, TAN, Contact Details, and details of the specific person responsible for the deduction.
- Part B (Deposit Details): Captures details of the tax deducted and paid to the Central Government (including Total Tax, Interest, Fee, BSR Code, Date of Deposit, and Challan Serial No.).
- Annexure (Deductee-wise break up): Submitted for all four quarters, this captures deductee-level TDS information. It includes PAN, Name, Taxpayer Identification Number (TIN), Country of residence, Amount paid, Tax deducted, and crucially, whether the rate of TDS applied is as per the IT Act or a Double Taxation Avoidance Agreement (DTAA).
6. Mandatory Documents Required To prepare the filing, the deductor must have:
- Copies of the challans through which the tax was deposited.
- PAN details of the deductees (where available).
- Form 10F / Tax Residency Certificate (TRC) for deductees where DTAA benefits are claimed.
7. Outcomes and Issuance of Certificates
- Processing: The statement is processed by CPC-TDS. If processed with defaults (e.g., short payment), the deductor must pay the default amount and file a correction statement.
- For the Deductee (Issuance of Form 131): Based on the processed Form 144 data, the TRACES portal generates Form No. 131 (the TDS Certificate for non-salary income, replacing the old Form 16A). The deductor is legally obligated to download and issue this certificate to the non-resident deductees within 15 days from the due date of filing Form 144.
- Tax Credit: The deducted amount reflects in the deductee’s Annual Information Statement (AIS / Form No. 168), allowing non-residents to claim credit in their Indian tax returns or in their home country under DTAA.
8. Key Updates in the 2026 Rules
- Smart Form Features: Form 144 is designed as a “smart” form, enabling auto-population from the deductor’s TRACES profile, real-time validations, drop-downs, and API integrations.
- Standardization: Surcharge and cess details are now consolidated under the challan details, outdated fields like “Token No.” have been replaced with “Return Receipt Number”, and grouping anomalies (Name, Designation, Address, PAN) have been separated into distinct boxes. Terminology has also been updated (e.g., “Tax year” instead of “Assessment year”).