Form 149 Income Tax Rules 2026 pdf download and Key points

Last Updated on: April 23, 2026

Form 149 Income Tax Rules 2026 pdf download and Key points

Form No. 149

[See rule 221(1)(a)]
Form for furnishing accountant certificate under section 398(2) for person responsible for deduction of tax not
to be deemed to be an assessee in default

Under the new Income-tax Rules, 2026, Form No. 149 replaces the old Form 26A,. It is governed by Section 398(2) of the Income-tax Act, 2025, and Rule 221 of the Income-tax Rules, 2026,.

Here are all the key points regarding Form No. 149:

1. Purpose of the Form Form 149 provides a mechanism for a deductor to seek relief from being treated as an “assessee in default” under section 398(2) of the Act,. It is used when a deductor fails to deduct tax at source (or deducts it short), but the payee (deductee) has already included that income in their Income Tax Return (ITR) and paid the corresponding taxes,,.

2. Applicability (Who Should File)

Who files: It is filed by the deductor (payer) who missed the TDS deduction but knows the deductee has discharged the tax liability,.
Deductee Types: It can be filed for failures involving both resident and non-resident deductees.

3. Frequency and Due Dates This is an event-based form. There is no periodic deadline; it should be filed as and when a short-deduction or non-deduction default arises and the deductor wishes to seek statutory relief.

4. Mode of Filing and Process Flow Filing Form 149 involves a multi-step online collaboration between the deductor and a Chartered Accountant (CA):

Step 1: The deductor logs into the TRACES portal and initiates a “Request for Form No. 149”,.
Step 2: The request is transmitted to the e-Filing portal, where the deductor assigns a CA by entering their membership number,.
Step 3: The assigned CA logs into their own e-Filing account, verifies the deductee’s tax compliance, and digitally signs the Accountant’s Certificate (Annexure A),.
Step 4: The deductor then submits the final completed Form 149 on the e-Filing portal, which is subsequently processed at TRACES.

5. Structure of the Form The form consists of three main components:

Part A (Particulars): Captures the details of the Payer (Name, Address, PAN, TAN), the person responsible for paying, the Payee (Deductee), and the specific transaction details including the amount paid, interest, and challan/BIN details,.
Declaration: A standard verification signed by the deductor.
Annexure A (Accountant’s Certification): A certification by the CA confirming that the deductee has filed their ITR, included the income that was not subjected to TDS, and paid the tax due on it,.

6. Mandatory Documents Required To successfully file the form, the deductor and CA will need:

TAN & PAN of the Deductor and the PAN of the Deductee.
The acknowledgment number and date of the Deductee’s filed ITR.
Tax computation and proof of tax payment by the Deductee.
The digitally signed CA Certificate in the prescribed format.

7. Outcomes and Continuing Liabilities

Relief Granted: If the form is successfully processed by CPC-TDS or the Assessing Officer and matches the deductee’s tax records, the default demand is nullified, and the deductor is officially treated as an “assessee not in default”,. This may waive applicable penalties under sections 412 or 448 and prosecution under section 476.
Interest is Still Payable: Crucially, filing Form 149 does not eliminate all financial liability. The deductor is still legally required to pay interest at 1% per month calculated from the date the tax was originally deductible until the date the deductee actually paid the tax,,.

8. Key Updates in the 2026 Rules

Smart Form Features: Form 149 has been upgraded to a “smart form” that auto-populates relevant details directly from the Deductor’s TRACES profile to enhance the user experience and ease of filing.
Government Deductors: In cases involving a Government deductor, the Permanent Account Number (PAN) is to be mentioned specifically as “PANNOTREQD”.

Form 149 Income Tax Rules 2026 pdf download

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Practical Example of Form 149 Income Tax

The Scenario: Imagine Company X (Payer) hires Mr. Y (Payee/Consultant) for professional services and pays him ₹ 5,00,000 in June 2026. Company X completely forgets to deduct the required 10% TDS (₹ 50,000) on this payment.

The Problem: Because Company X failed to deduct the tax, the Income-tax Department would normally deem Company X as an “assessee in default,” leading to penalties and the disallowance of the ₹ 5,00,000 expense.

The Solution using Form 149 Income Tax:

In July 2027, Mr. Y files his personal income tax return. He honestly reports the ₹ 5,00,000 he received from Company X as his professional income and pays all his income tax out of his own pocket.
Company X discovers their TDS mistake. Instead of paying the ₹ 50,000 TDS out of their own pocket now (since Mr. Y already paid tax on it), Company X hires a Chartered Accountant.
The Accountant verifies Mr. Y’s filed tax return and confirms Mr. Y paid his taxes.
The Accountant files Form No. 149, explicitly detailing Mr. Y’s return acknowledgment number, tax paid, and the original ₹ 5,00,000 transaction.
Company X pays the mandatory 1% per month interest under Section 398(3)(a) for the period they delayed the deduction and declares this payment in row 12 and 13 of the form.

The Outcome: Once Form 149 is successfully filed, Company X is officially not deemed an assessee in default for the ₹ 50,000 missing TDS, saving them from severe default penalties.

Form No.149– Frequently Asked Questions

1. What is Form No. 149 and its purpose?
Ans: Form No. 149 offers an option to remove or rectify TDS defaults for failure to deduct tax at source, thus granting relief from being deemed to be an ‘Assessee in Default’. If for some reason, a deductor fails to deduct tax at source on a certain payment but the deductee discharges the tax liability on such amount by filing a return of income and paying the due taxes, then the deductor can e-file Form No. 149. It includes a certificate in Annexure A, from an Accountant confirming the fact that the deductee has
(a) filed an ITR
(b) by including income which was not subjected to TDS, and
(c) paid tax on such income.

2. Who is required to file Form No. 149?
Ans: This form is required to be filed by a deductor in a case where there was a failure on his part to deduct tax at source, however the tax liability was discharged by the deductee. It can be filed by the deductor before the Assessing Officer for not deeming him as a assessee in default in respect of the amount on which he failed to deduct tax.

3. Does filing Form No. 149 eliminate all the liabilities of the deductor?
Ans: No. If Form No. 149 is accepted by the Assessing Officer, then the deductor is not deemed to be an assessee in default in respect of tax amount he failed to deduct. However, the deductor is still required to pay the interest amount calculated from the date on which such tax was deductible to the date of furnishing of return of income by the concerned deductee.

4. What details are certified by the accountant in Annexure A of Form No. 149?
Ans: The accountant certifies that:
 The deductee has filed the return of income u/s 263.
 The income on which tax was not deducted by the deductor has been included such return of income.
 The deductee has paid the tax due on the income declared by him in such return of income.

5. Is Form No. 149 applicable only in respect of resident deductees?
Ans: No. This form can be filed by the deductor for failure to deduct tax from both a resident or non-resident deductee.

6. What is the mode of filing Form No. 149?
Ans: Filing of Form No. 149 is to be initiated by the deductor on TRACES website. The request will be transmitted to the e-filing portal of Income-tax Department. The deductor will assign the same to the Chartered Accountant on e-filing portal. The Chartered Accountant will issue the certificate in Annexure A on e-filing portal. Thereafter, the
deductor will submit the application in Form No. 149 on e-filing portal, which will be processed at TRACES.

7. How will the deductor know whether the Form No. 149 submitted by him has been successfully submitted to the Income-tax Department?
Ans: After filing Form No. 149 on the e-filing portal of Income-tax Department, the deductor receives an Acknowledgment Number on successful submission of the Form.

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