Skip to content

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

Verma Exports Ltd failed to deduct tax on a payment, and the deductor obtained an accountant's certificate for non-deduction or short deduction of tax under section 398(2). Under Rule 221 of the Income-tax Rules, 2026, which form is used and to whom is it furnished?

The accountant's certificate for non-deduction or short deduction is furnished in Form No. 149 to the Director General of Income-tax (Systems) or the person authorised by him. Form No. 150 is only for non-collection or short collection of tax.

  1. AForm No. 149, furnished to the Director General of Income-tax (Systems) or the person authorised by himCorrect
  2. BForm No. 150, furnished to the Director General of Income-tax (Systems) or the person authorised by him
  3. CForm No. 149, furnished to the Assessing Officer of the deductee
  4. DForm No. 139, furnished to the Director General of Income-tax (Systems)

Explanation

Rule 221(1)(a) prescribes Form 149 for non-deduction or short deduction, while Form 150 is for non-collection or short collection. Rule 221(2) requires furnishing to the Director General of Income-tax (Systems) or the person authorised by him. Form 139 is a refund claim form under Rule 219(6).

Did you get it right without looking?

One question tells you little. A timed set on Deduction, Collection and Recovery of Tax shows your real accuracy, how long you take and where you lose marks.

Practise Deduction, Collection and Recovery of TaxFree diagnostic mock

More Deduction, Collection and Recovery of Tax questions