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

Mehta & Sons, a partnership firm, deducted tax at source for the first time on 12th August without holding a tax deduction and collection account number. It had not applied for the number before deducting. Under Rule 216 of the Income-tax Rules, 2026, by when must the application be made, and in which Form if the firm is not a Government entity?

The application is due by 30th September in Form 135. Where no application was made before deduction, Rule 216 allows thirty days from the end of the month of deduction, which is August. A firm is not a Government entity, so Form 135 applies.

  1. ABy 30th September; Form 135Correct
  2. BBy 30th September; Form 134
  3. CBy 31st August; Form 135
  4. DBy 11th September; Form 134

Explanation

Rule 216(4)(b) allows application within thirty days from the end of the month in which tax was deducted. The month is August, which ends 31st August, so 30 days after it is 30th September. Rule 216(1)(b) prescribes Form 135 for a person other than a Government entity. Form 134 is only for Government entities.

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