Form No. 150 (Earlier Form No. 27BA)

Form No. 150 – Form for furnishing accountant certificate under section 398(2) of the Act for Collector of tax at source not deemed to be an assessee in default

Purpose:

This form is required when a collector has failed to collect tax, but the collectee has already taken the income into account and paid taxes thereon.

It is used to establish that the collector is not deemed to be in default under 398(2) of the Income-tax Act, 2025.

As per 221 of the Income-tax Rules, 2026:

“For the purposes of 398(2), the certificate from an accountant shall be furnished electronically in Form No. 150 to the Director General of Income-tax (Systems) or the person authorised by him.”

Who should file:

• Form No. 150: To be filed by a collector who fails to collect tax at source on a certain payment but the 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.
• These forms are used to certify that the collectee has:

1. filed an ITR
2. by including income which was not subjected to TCS, and
3. paid tax on such income.

Once certified, the collector is not treated as an assessee-in-default, though interest under section 398 may still apply.

Frequency & Due Dates:

Form No. 150 should be filed as and when such a case arises where:

• Tax was not collected or was collected short, and
• The collector seeks relief from being treated as in default under section 398.

It should be submitted electronically through TRACES, after obtaining a Chartered Accountant (CA) certificate in the prescribed format.

Structure of Form No. 150:

1. Part A:

• Particulars of the Seller – Name, Address, PAN and TAN.
• Particulars of the person responsible for collecting tax – Name, Address and PAN.
• Particulars of the Buyer – Name, Address and PAN.
• Particulars of Transactions – Amount received/debited, Interest, Interest paid or not, Challan/BIN details (if Interest paid).

2. Declaration

3. Annexure A – Accountant’s Certification

• Verification that collectee has included the income in its return.
• Date of filing of return, Acknowledgement No., and computation reference.
• Details of tax paid by collectee.
• Declaration and signature of Chartered Accountant with Membership No.

Documents/details required to file Form No. 150:

To file Form No. 150, the following are typically needed:

1. TAN & PAN of Collector and PAN of Collectee
2. Acknowledgment number and date of Collectee’s Income-tax Return (ITR)
3. Tax computation and proof of payment by Collectee
4. Details of amount received or debited where TCS was missed
5. CA Certificate in the prescribed format (digitally signed)
6. Supporting documents, if any, for verification through TRACES portal.

Process flow of filing Form No. 150:

1. Initiate Request on TRACES:

• 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).
• A Unique Request Number (URN) is generated. The status transitions from Requested → Upload File → Submitted → Sent to E-Filing → Processed/Rejection, etc.

2. Prepare & Upload the File:

• Collector downloads the prescribed .csv template and utility (“TRACES-Sample-150”), fills details (PAN, amounts, etc.), runs it through the utility to generate a .nzip file, and uploads it on TRACES. List of PANs with short collection will be available to the Collector. He can mention the PANs where collector does not collect any TCS at all.
• Digital Signature (DSC) or I-PIN authentication is required for submission.

3. Assigning a Chartered Accountant:

• After TRACES processes the request, the collector moves to the Income-tax e-Filing portal, goes to “Submit and View Form 150”, and assigns a CA by inputting their membership number.

4. CA Certification (Annexure A):

• The CA logs into their e-Filing account, reviews the request, downloads/upload relevant Annexure A files, verifies compliance (e.g., payee filed return, tax paid), signs the certification, and submits.

Outcome of processed Form No. 150:

• CPC-TDS processes the certificate if the demand has been raised by the CPC-TDS.
• AO(TDS) processes the certificate if the manual demand raised/398 order passed by the AO(TDS).
• If matched with collectee’s ITR and tax paid records, the demand for default is nullified and Collector will be treated as “Assessee not in default”.
• CPC-TDS / AO(TDS) recalculates and issues a demand or relief; the collector can then view the updated status and any adjustments (like reduced interest or corrected demand).
• Even after filing of Form No. 150, collector is liable to pay interest @ 1% per month from the date TCS was collectible → till the date of actual tax payment by collectee.
• Penalty u/s 412, 449 or prosecution u/s 477 may not apply if Form No. 150 is furnished and accepted.

Brief note on qualitative changes made:

The revised Form No. 150 will be a smart one to enhance user experience and providing ease of filing through

a. auto-population/pre-filling of relevant details using information available from the collector’s TRACES profile.

b. real time validations & error handling

c. drop downs & date pickers

d. integration with APIs & Databases

e. Check box based smart verification

f. Standardization of name & address fields etc.

Common Changes made across Forms:

1. To make Forms system-friendly and enable e-filing and uploading, certain anomalies found due to grouping of Name, Designation, Address and PAN have been separated into different boxes.
2. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.
3. Changes in Sections, Clauses and Schedules have been aligned as per the Income-tax Act, 2025.
4. Currency symbol “Rs.” has been replaced with “₹”.