Income Tax Form 150 (Earlier Form 27BA): CA Certificate for TCS Default Relief

Form No. 150, introduced under section 398(2) of the Income-tax Act, 2025, replaces earlier Form 27BA and provides relief to a tax collector who failed to collect tax at source (TCS) on specified transactions. The form enables the collector to avoid being treated as an “assessee in default” where the collectee has already included the income in their return, filed the return, and paid the applicable taxes. It requires certification by a Chartered Accountant in Annexure A confirming compliance by the collectee. Filing is done electronically through TRACES and the e-filing portal, and the Assessing Officer verifies the claim before granting relief. However, interest liability for delayed collection still applies even if default status is removed. The mechanism ensures that tax is ultimately collected while preventing double recovery and undue hardship to the collector, thereby improving compliance efficiency and aligning liability with actual tax payment.

Income Tax Department
Ministry of Finance, Government of India

FAQs on Income Tax Form No. 150 (Earlier Form No. 27BA): Form for Non-Default Certificate under TCS Provisions

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

Form No. 150 – Frequently Asked Questions

Form for furnishing Accountant Certificate under section 398(2) of the Income-tax Act, 2025

Q1. 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 `collected’) 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 collected 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.

Q2. 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.

Q3. 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.

Q4. 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.

Q5. 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.

Q6. 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.

Q7. 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.

Guidance Note on  Income Tax Form No. 150 (Earlier Form No. 27BA): Form for Non-Default Certificate under TCS Provisions

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,

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 “Z”.