Form 27EQ: Your Essential Guide to TCS Reporting
Table of Contents
Introduction:
To enhance the efficiency of tax collection in India, the government introduced Tax Collected at Source (TCS). Under this mechanism, a seller collects taxes from a buyer at the time of purchase. Upon collection, the seller is responsible for remitting the TCS amount to the Income Tax Department within a specified time frame.
Moreover, in accordance with Section 206C of the Income Tax Act, both government and non-government collectors and deductors are required to submit Form 27EQ at the conclusion of each quarter. Form 27EQ serves as a statement detailing the tax collected at source. Failure to comply with this requirement can result in substantial penalties.
Form 27EQ:
Form 27EQ is a quarterly statement that comprehensively outlines the tax collected at source from the collectors and deducted from the buyers or payers within a specified period. It is mandated to be submitted at the end of every quarter by government and corporate collectors and deductors under Section 206C of the Income Tax Act, 1961.
It’s important to note that Form 27Q pertains to quarterly TDS payments made to NRIs and foreigners, excluding salary statements under Section 200(3) of the Income-tax Act, 1961, while Form 27EQ is associated with the quarterly TCS statement submitted by government collectors and deductors.
Eligibility submit Form 27EQ:
A common challenge for business owners and individuals is understanding the forms to be submit. This confusion extends to the Form 27EQ associated with the TCS transaction, which details the quarterly tax collection at source from buyers. corporations and government companies with annual turnover exceeding Rs. 10 crore are required to collect TCS payment.
Only a select few individuals are required to submit Form 27EQ. Below is a list of employees who need to fill out the form.
- State Government
- Central Government
- Partnership firms
- Co-operative Societies
- Any individual or Hindu Undivided Families (HUFs) who are required to undergo an audit of their accounting books for any financial year.
Features of Form 27EQ:
- Below are the key characteristics of Form 27EQ:
- Section 206 of the Income Tax Act delineates the guidelines and regulations pertaining to the submission of Form 27EQ.
- Individual submission of this form requires a Tax Deduction and Acquisition Account Number (TAN).
- Government and corporate deductors and collectors are required to file Form 27EQ quarterly.
- The purpose of this form is to notify the Income Tax Department about the tax collected at the source and deducted by the seller.
- Government deductibles are required to indicate ‘PANNOTREQD’ in the form, while non-government deductibles have to provide their PAN details.
Structure of Form 27EQ:
Form 27EQ has five main sections, each of which we will explain in more detail, providing detailed insight into its content.
Section 1 :
- The first stage requires all necessary information from the deductor . The deduction is required to include all information requested under this section.
- TAN
- PAN card
- Please specify the assessment year.
- Indicate the financial year for which you are submitting the form.
- Please state the previously submitted statement for the quarter and provide the provisional receipt number of the current quarter’s previous filing.
Section 2 :
- This section primarily pertains to collectors. You will be required to furnish all the necessary information and details required by the collector.
- name of the collector
- branch or division of the collector
- Personal details of the collector including residential information, phone number, and email address.
Section 3 :
- The person responsible for collecting the tax should fill in the following information in this section of the form.
- Name
- Full address
Section 4:
- This section requires detailed description of tax levied at source and tax deposited with the Central Government.
- Please specify the amount collected at the source (TCS).
- Specify the amount of the education cess.
- Indicate the amount of interest imposed.
- Provide the cheque number or demand draft number if necessary.
- Specify the date on which the tax was deposited.
- Specify whether any TCS has been deposited through a book entry.
- Specify the collection code.
- Please state the surcharge amount.
- Specify any other applicable amount, if applicable.
- Specify the total amount of tax deposited for the respective quarter.
- BSR code
- Please provide the transfer voucher number or the Challan serial number.
Section 5 :
In the last and final section, the collector or deductor is required to provide all details regarding the tax collected at the source and the amount paid, along with signatures in designated sections. All the aforementioned details must be included in the annexure provided on the following page.
Due Date:
Government and corporate tax collectors and deductors are required to submit Form 27EQ when filing TCS returns quarterly. The due dates for submission are as follows:
| April 1 to June 30 | July 31 |
| July 1 to September 30 | October 31 |
| October 1 to December 31 | January 31 |
| January 1 to March 31 | May 31 |
Steps to Download Form 27EQ:
- Downloading Form 27EQ is easy; Just follow these simple steps:
- Go to NSDL’s official website.
- Go to ‘Download’ in the above navigation bar, then select ‘E-TDS/E-TCS’ from the dropdown menu.
- Then, select ‘Quarterly Returns’ followed by ‘Regular’.
- Once the new page appears, scroll down to the ‘Forms’ column and click on ‘Form 27EQ.’
- The form will open up, and in the top right corner, you’ll find the option to download or print it.
Penalty:
- Submitting Form 27EQ along with TCS returns is crucial, as any delay in submission incurs the same penalty as that for late filing of TCS returns. Therefore, the penalty structure is as follows:
- Failure to submit this form by the due date may result in deduction of penalty from the Assessing Officer. The amount of penalty may vary from Rs. 10,000 to Rs. 100,000 depending on the gravity of the crime.
- A late fee of Rs. 200 per day will be imposed until the collector or deductor submits the returns along with this form. However, the cumulative late fee charged on the collector cannot exceed the TCS amount.
Conclusion:
Form 27EQ plays a pivotal role in ensuring the successful collection and deposition of taxes. It not only furnishes information on tax collection but is also indispensable for TCS returns filing. Therefore, collectors should carefully review the aforementioned details to ensure timely and successful submission of Form 27EQ before the due date.