Form 149: Accountant certificate under section 398(2) for a deductor not to be treated as an assessee in default
Source checked 21 October 2026 · Original author: Finin2min Editorial Desk
Purpose, person and period
Accountant certificate under section 398(2) for a deductor not to be treated as an assessee in default.
The payer furnishes Form 149 with the eligible accountant’s Annexure A establishing the payee’s return, inclusion and tax payment; interest is separately computed and discharged.
Period gate: This numbered form belongs to the Income-tax Rules, 2026, effective 1 April 2026. The predecessor 26A is a concordance, not permission to change an earlier-year filing into a new-law form. For earlier periods, use the applicable 1961 Act form and saved procedure.
Controlling rule and source pages
Rule 221; Section 398(2). Physical PDF pp 833-836; printed Gazette pp 2365-2368.
Rule 221 — connected rule text
221. Form for furnishing certificate of accountant under Section 398(2) for person responsible for deduction or 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:— (1) The certificate from an accountant, as defined in section 515(3)(b), under section 398(2) shall be furnished,— (a) in Form No. 149, for non-deduction or short deduction of tax; and (b) in Form no. 150, for non-collection or short collection of tax. (2) Form No. 149 or Form No. 150 referred to in sub -rule (1) shall be furnished to the Director General of Income -tax (Systems) or the person authorised by him.
Completed field illustration
Fictional data, not for filing. A fictional payer’s default-relief record links an undeducted professional payment to the payee’s later return and full tax payment, while retaining interest.
| Form field / block | Completed fictional entry |
|---|---|
| Part A: payer / TAN / responsible person | Example Client Ltd, synthetic ZZZCE0000Z, MODEL-TAN-149, 10 Model Road Pune / Priya Arun Sharma, model officer |
| Payee / PAN / transaction | Example Professional Services Ltd / synthetic ZZZCE0001Z / professional accountancy fee Rs 10,00,000 credited 15 September 2026; assumed 10% deductible Rs 1,00,000, nil deducted |
| Rows 11-14: non/short deduction / interest / payment | Non-deduction Rs 10,00,000, short-deduction nil / Rs 11,000 / assumed paid 1 August 2027 through MODEL-CIN-149 |
| Annexure A(i): nature / section / payment / deductible / deducted | Professional services / applicable section 393(1) branch / Rs 10,00,000 / Rs 1,00,000 / nil |
| Annexure A(ii): payee return / income / tax / taxes paid | TY 2026-27, filed 31 July 2027, MODEL-ITR-149 / taxable income Rs 5,00,000 after Rs 5,00,000 allowable expenses against this Rs 10,00,000 gross receipt, no other income / tax Rs 1,30,000 at assumed 25% company rate plus cess / paid Rs 1,30,000 |
| Annexure A(iii): inclusion / gross receipts / taxable income | Payment included under business/profession / gross Rs 10,00,000 / taxable Rs 5,00,000 |
| Independence / professional verification | Would require independent eligible accountant and actual records / NOT CERTIFIED, no UDIN, NOT SIGNED |
This illustrates the named fields, not every possible schedule. Use the complete official extract for additional applicable fields, annexures and verification. “Not signed” means no professional certification or authority action has occurred.
Reconcile the example
- 1% × 1,00,000 × 11 months or parts (September 2026 through July 2027) = 11,000 model interest.
- 10,00,000 receipt - 5,00,000 assumed allowable expenses = 5,00,000 income; 25% plus 4% cess = 1,30,000.
Relief from assessee-in-default treatment depends on all section 398(2) conditions and the actual accountant certificate. Payee tax payment does not by itself erase the payer’s interest or establish complete compliance; the assumed company rate and expenses need real evidence.
Prepare, furnish and retain
- Use the form identity and period above, then determine the person who prepares, issues or verifies it from Rule 221. An authority-issued order is not an applicant filing.
- Collect the records that support the actual fields in the example; keep any mandatory schedules and annexures specified in the complete source form.
- Reconcile dates, amounts, units and identifiers to the underlying records. Preserve the applicable rule version and any later correcting notification.
- Where the rule prescribes electronic furnishing, use the current official utility/schema and authorised verification. A local PDF does not produce a portal acknowledgement.
- Retain the submitted version, supporting schedules and actual acknowledgement or issued certificate/order, as applicable. This fictional model supplies none of those evidential outcomes.
Download the correct documents
Official Form 149 source extract Filled sample — fictional field illustration
The official extract preserves source pages; later amendments are supplied with affected forms. Read the April corrigendum where its printed-page corrections apply. The filled field illustration is an educational model and cannot be filed.
Primary sources
- Physical PDF pp 833-836; printed Gazette pp 2365-2368; Appendix III, Form 149
- Finance Act 2026, current-rate Schedule and relevant amendments: section 84 (393), section 85 (394), section 59 (206); read exact payment and tax-year branch
- Corrigendum to G.S.R.198(E), 16 April 2026; read affected printed page references
- Section 398(2)-(3), physical PDF p499: return/inclusion/tax certificate and interest
Questions readers ask
Does this sample prove approval, filing or a professional conclusion?
No. It completes the named fields using synthetic facts. It has no real signature, DSC, approval or acknowledgement.
Can I use the legacy form number for a current tax-year obligation?
Establish the governing period first. A predecessor number is a cross-reference; earlier-year procedures and current-year forms must be kept distinct.