Form 26A is the accountant's certificate a payer files when it failed to deduct TDS, but the payee has already included the income in a return and paid the tax on it. Under the first proviso to section 201(1) of the Income-tax Act 1961, a deductor with an accepted Form 26A is not treated as an assessee in default. For tax year 2026-27 under the Income-tax Act 2025, the equivalent is Form 149 under Rule 221 of the Income-tax Rules 2026.
Facts checked: 9 October 2026. For the Income-tax Act 2025 we read section 398 and Rule 221 on the Income Tax Department's site: section 398(2) sets the accountant's certificate condition, and Rule 221 requires it in Form 149 (non-deduction or short deduction) or Form 150 (non-collection or short collection of tax), furnished to the Director General of Income-tax (Systems) or the person authorised by him. The earlier Rule 31ACB and Form 26A under the 1961 Act, and the Form 149 filing steps, were not read from primary text and rest on commentary.
Form 26A in one table
| Point | Position |
|---|---|
| Law (1961 Act) | First proviso to section 201(1); Rule 31ACB; Form 26A |
| Law (2025 Act) | Section 398(2); Rule 221; Form 149 (Form 150 for non-collection of TCS) |
| Who files | The deductor (payer) |
| Who certifies | A chartered accountant, through Annexure A |
| Filed with | The Director General of Income-tax (Systems) or a person authorised by that office, electronically |
| Relief | Deductor is not treated as an assessee in default for that non-deduction |
| Still payable | Interest on the late or missed deduction |
When a deductor uses it
The situation is common in tax audit and TDS assessments. A payer did not deduct tax, or deducted too little, on a payment such as contractor or professional fees. The department raises a demand under section 201. If the payee has meanwhile filed a return, shown the receipt as income and paid the tax due, the deductor can prove that with a CA certificate. The relief is against the demand on the deductor, not a waiver of the payer's obligation to deduct next time.
The same facts also matter for the expense disallowance. The 1961 Act has a related proviso to section 40(a)(ia) that treats the deductor as having deducted and paid tax once the payee has paid it. Our section 40(a) TDS disallowance calculator shows the disallowance for a missed deduction.
How the CA certifies
The accountant checks the payee's side of the story, not the deductor's books:
- The payee filed a return of income.
- The sum on which tax was not deducted is included in that return.
- The tax due on the return, including that income, was paid.
Keep the evidence in the working paper: the payee's return acknowledgement, the computation of income, and the challans. Reported steps for Form 149: the deductor raises the request on TRACES, assigns the CA by membership number on the e-Filing portal, the CA signs Annexure A, and the deductor submits the form and receives an acknowledgement number. A reconciliation file such as the TDS reconciliation working paper helps tie the payment to the payee's records.
Form 26A, Form 26AS and Form 16A are different things
- Form 26A: the accountant's certificate described above.
- Form 26AS: the annual tax credit statement showing TDS deducted against a PAN. For the 2026-27 changes to that statement, see Form 26AS to Form 140.
- Form 16A: the TDS certificate a deductor issues to a payee for non-salary payments.
A search for "form 26a" with the intent to download a TDS statement almost always wants Form 26AS.
Worked example (illustrative numbers)
A company pays a consultant ₹6,00,000 in professional fees and does not deduct TDS at 10%. An assessment order treats the company as in default for ₹60,000. The consultant had already filed her return, included the ₹6,00,000 and paid the tax. The company gets Annexure A signed by its CA, files the form, and on acceptance is not treated as an assessee in default for the ₹60,000. It still owes interest at 1% per month on the tax, which on ₹60,000 is ₹600 for each month or part of a month. Under section 398(3)(c) of the 2025 Act, that interest runs from the date the tax was deductible to the date the payee furnished the return of income, not the date the payee paid the tax. Interest at 1.5% per month applies from deduction to payment under section 398(3)(a)(ii).
Frequently asked questions
Is Form 26A still valid for 2026-27?
For tax years under the 1961 Act, yes. For the Income-tax Act 2025, the reported replacement is Form 149 under Rule 221 of the Income-tax Rules 2026.
Does Form 26A remove interest?
No. The relief is from being treated as an assessee in default. Interest at 1% per month still applies.
Can any CA sign it?
The certificate must come from an accountant as defined for this purpose, and is signed digitally on the e-Filing portal. A practising CA is the usual signatory.
Does it apply to non-resident payees?
Section 398(2) of the 2025 Act refers to the payee and does not restrict it to residents. The 1961 proviso, which Form 26A relates to, was not re-read, so check it for pre-2026 cases.
Use the TDS rate finder to confirm the rate that should have applied, and the TDS interest and late fee calculator for the interest.
Statutory facts on this page are checked against their sources, and the page says where it relied on secondary reporting. How we verify · Report an error