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CA Final · Direct Tax Laws & International Taxation · Deduction, Collection and Recovery of Tax

Anand Textiles Ltd failed to deduct tax on a payment to a payee. An accountant's certificate is to be used so that Anand is not treated as an assessee in default, and separately it has overcollected tax on another transaction. Under the Income-tax Rules, 2026, which statement is correct?

Form No. 149 is the accountant's certificate for non-deduction or short deduction, while a deductor's refund claim for sums paid to the Central Government is made in Form No. 139. Form 150 relates to collection and Forms 141 and 143 are statements.

  1. AForm No. 149 is furnished for non-deduction or short deduction, and a refund claim of tax paid to the Central Government is furnished in Form No. 139Correct
  2. BForm No. 150 is furnished for non-deduction or short deduction, and refund claims are in Form No. 139
  3. CForm No. 149 is furnished for non-collection, and refund claims are in Form No. 141
  4. DForm No. 149 is furnished for non-deduction, and refund claims are in Form No. 143

Explanation

Rule 221(1) prescribes Form 149 for non-deduction or short deduction and Form 150 for non-collection or short collection. Rule 219(6) says a refund claim for sums paid under the chapter is furnished by the deductor in Form 139. The other options swap the forms.

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