27EQ: Comprehensive Guide on TCS Return

27EQ: Comprehensive Guide on TDS Return

27EQ is a quarterly return form that contains details on the tax collected at the source. Both corporate and government collectors and deductors have to file every quarter. This form is notified in Section 206C of the Income Tax Act 1961. Form 27EQ informs about the tax collected and paid to the federal government in a financial year. This article will guide you on who has to file 27EQ on TCS return, what details it contains, and other information for the TCS return form.

Who needs to File Form 27EQ?

The following entities must file the form 27EQ for the TCS returns

• Registered businesses and entities must file form 27EQ quarterly. The businesses selling goods or services that fall under the TCS applicability criteria under section 206C are to file this form
• Government entities and agencies that collect tax at source on the specified transactions must also file it before the due date
• Partnership firms and individuals (focuses on large businesses, and high value transactions) must file this form
• The folllwoing transactions are included
  • sale of motor vehicles above Rs 10 lakhs
  • foreign remittances above Rs 7 lakhs
  • sale of goods above Rs 50 lakhs (as per finance act 2020)
  • transactions involving tendu leaves, timber, scap, minerals, etc

27EQ Form Details

The TCS return form is categorized into 5 sections, and each section contains a separate set of details.

Section 1

• PAN/TAN Details
• Financial year
• Assessment year
• Whether a statement is already filed in the previous quarter or not
• If such a statement is filed, then provide the provisional receipt number of the original statement

Section 2

• Name of the collector
• Branch and division of the collector (if applicable)
• Collector’s personal and residential details such as full address, telephone number, and e-mail address

Section 3

• Individual’s name
• Full address

Section 4

• Collection code
• TCS amount
• Surcharge amount
• Education cess
• Interest charged
• Any other amount
• Total tax deposit
• Cheque number or demand draft, if applicable
• BSR code
• Date on which the tax amount is deposited
• Transfer voucher number or the challan serial number
• If the tax collected at the source was deposited via book entry

Section 5

The taxpayer has to provide details on the amount paid and the TCS collected along with a signature. Other details have to be mentioned based on the annexure attached to the form.

Due Dates to File Form 27EQ

Quarter	Period	Due Date
1st	1st April to 30th June	15th July
2nd	1st July to 30th September	15th October
3rd	1st October to 31st of December	15th January
4th	1st January to 31st March	15th May

If TCS is not paid by the due date, it attracts penalties and a late fee applicable based on each delayed day. The maximum penalty could be Rs 1,00,000 and the late fee is Rs 200 for each delayed day. The late fee can be equivalent to the TCS amount payable.

Get Started with TaxDunia

Filing 27EQ on time ensures smooth compliance and better functioning of the business. It helps in the effective management of taxation for both the government and the end consumer. For any kind of finance and taxation-related advice, reach out to the team of TaxDunia. Our personalized solutions cater to the unique needs of your diversified clientele base. Let us connect now to reap better results in the future.