Form 150 Income Tax Rules 2026 pdf download and Key points
FORM NO. 15 0
[See rule 221(1)(b)]
Form for furnishing accountant certificate under section 398(2) for person responsible for collection of tax as
per section 394(1)[Table: Sl. No. 1 to 5 and 9] not to be deemed to be an assessee in default
Under the new Income-tax Rules, 2026, Form No. 150 replaces the old Form 27BA. 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. 150:
1. Purpose of the Form Form 150 provides a mechanism for a seller, authorized dealer, licensor, or lessor (the “collector”) to seek relief from being treated as an “assessee in default” under section 398(2) of the Act. It is used when a collector fails to collect Tax Collected at Source (TCS) (or collects it short), but the buyer, licensee, or lessee (the “collectee”) 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 electronically by the collector who missed the TCS collection but knows the collectee has discharged the tax liability.
- Collectee Types: It can be filed for failures involving both resident and non-resident collectees.
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-collection or non-collection default arises and the collector wishes to seek statutory relief.
4. Mode of Filing and Process Flow Filing Form 150 involves a multi-step online collaboration between the collector and a Chartered Accountant (CA):
- Step 1: The collector logs into the TRACES portal, raises a “Request for Form 150” by selecting the financial year, form type, and transaction type (short/non-collection), and authenticates using a Digital Signature Certificate (DSC) or I-PIN.
- Step 2: The collector moves to the Income-tax e-Filing portal, navigates to “Submit and View Form 150”, and assigns a CA by entering their membership number.
- Step 3: The assigned CA logs into their e-Filing account, reviews the request, verifies the collectee’s compliance (i.e., ITR filing and tax payment), signs the Accountant’s Certificate (Annexure A), and submits it.
- Step 4: The collector then submits the final application 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 Seller/Collector (Name, Address, PAN, TAN), the person responsible for collecting tax, the Buyer/Collectee, and specific transaction details (amount received/debited, interest paid/unpaid, and Challan/BIN details).
- Declaration: A standard verification signed by the collector.
- Annexure A (Accountant’s Certification): A certification by the CA confirming that the collectee has filed their ITR u/s 263, included the income that was not subjected to TCS, and paid the tax due on it. It includes the ITR filing date, acknowledgment number, and CA’s membership details.
6. Mandatory Documents Required To successfully file the form, the collector and CA will need:
- TAN & PAN of the Collector and the PAN of the Collectee.
- The acknowledgment number and date of the Collectee’s filed ITR.
- Tax computation and proof of tax payment by the Collectee.
- Details of the amount received or debited where TCS was missed.
- The digitally signed CA Certificate in the prescribed format.
7. Outcomes and Continuing Liabilities
- Relief Granted: If the form is matched with the collectee’s ITR and tax payment records, the demand for default is nullified, and the collector is officially treated as an “Assessee not in default”. This may waive applicable penalties under sections 412 or 449 and prosecution under section 477. The processing is done by CPC-TDS or the AO(TDS) depending on who raised the demand.
- Interest is Still Payable: Filing Form 150 does not eliminate all financial liability. The collector is still legally required to pay interest at 1% per month calculated from the date the TCS was originally collectible until the date the collectee actually paid the tax.
8. Key Updates in the 2026 Rules
- Smart Form Features: Form 150 has been upgraded to a “smart form” that auto-populates relevant details directly from the Collector’s TRACES profile to enhance the user experience and ease of filing.
Form 150 Income Tax Rules 2026 pdf download
click here
Form No.150– Frequently Asked Questions
1. What is Form No. 150 and its purpose?
Ans: Form No. 150 offers an option to a seller, authorized dealer, licensor or lessor (commonly called as a ‘collector’) to remove or rectify defaults for failure to collect tax at source, thus granting relief from being deemed to be an ‘Assessee in Default’. If for some reason, a collector fails to collect tax at source on certain transaction but the respective buyer, licensee or lessee (commonly called as a ‘collectee’) discharges the tax liability on such amount by filing a return of income and paying the due taxes, then the collector can e-file
Form No. 150. It includes a certificate in Annexure A, from an Accountant confirming the fact that the collectee has
(a) filed an ITR u/s 263
(b) taken into account the amount for computing income in that ITR which was not subjected to TCS, and
(c) paid tax on such income.
2. Who is required to file Form No. 150?
Ans: This form is required to be filed by a collector in a case where there was a failure on his part to collect tax at source, however the tax liability was discharged by the collectee. It can be filed by the collector before the Assessing Officer for not deeming him as an
assessee in default in respect of the amount on which he failed to collect tax.
3. Does filing Form No. 150 eliminate all the liabilities of the collector?
Ans: No. If Form No. 150 is accepted by the Assessing Officer, then the collector is not deemed
to be an assessee in default in respect of tax amount he failed to collect. However, the collector is required to pay the interest amount calculated from the date on which such tax was collectible to the date of furnishing of return of income by the concerned collectee.
4. What details are certified by the accountant in Annexure A of Form No. 150?
Ans: The accountant certifies that:
The collectee has filed the return of income u/s 263,
The amount on which tax was not collected by the collector has been taken into account for computing income in that return of income,
The collectee has paid the tax due on the income declared by him in such return of income.
5. Is Form No. 150 applicable only in respect of resident collectees?
Ans: No. This form can be filed by the collector for failure to collect tax from both resident as well as non-resident collectees.
6. What is the mode of filing Form No. 150?
Ans: Filing of Form No. 150 is to be initiated by the collector on TRACES website. The request will then be transmitted to the e-filing portal of Income-tax Department. The collector 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 collector will submit the application in Form No. 150 which will be processed at TRACES.
7. How will the collector know whether the Form No. 150 submitted by him has been successfully submitted to the Income-tax Department?
Ans: After filing Form No. 150 on the e-filing portal of Income-tax Department, the collector receives an Acknowledgment Number on successful submission of the Form.