What is Form 27EQ: Who Needs to File & How to File It?
You may have heard of Form 27EQ if you run a business in India and collect Tax Collected at Source (TCS). Form 27EQ is a statement that people who sell or collect TCS need to file with the Income Tax Department every three months. It tells you everything you need to know, like how much tax you received, from whom, and what kind of transaction it was. It’s like your official TCS report card.
This form makes sure that the government keeps accurate records of all TCS payments and lets buyers get credit for the tax that was taken from them. What is it, though, and who needs to file it? Let’s make it easy to understand.
Who Needs to Fill Out Form 27EQ?
Companies and the government have to follow this rule and fill out the form. Anyone who collects TCS under Section 206C of the Income Tax Act, even if they’re not a business, has to file it.
You should fill out this form if you’ve sold goods or services that are subject to TCS and have already collected tax from your customer.
What Kinds of Deals Need TCS?
- Selling alcohol, scrap metal, wood, or minerals like coal and iron ore
- This financial year, selling things worth more than 50 lakh rupees
- Through the Liberalized Remittance Scheme (LRS), you can send money to other countries.
- Selling tour packages to other countries
- Selling luxury cars worth over ₹10 lakhs
Any of these describe your transaction? You need to get TCS and fill out Form 27EQ.
Tip: Make sure the buyer gives you their PAN. If they don’t, you’ll have to take out more TCS.
It may sound complicated to file Form 27EQ, but you have to if you want to collect TCS. It helps your buyers get the tax credit they deserve and keeps your business safe from fines. So, whether you sell junk cars or scrap metal, don’t forget to do this important filing every three months.
What Types of Transactions Attract TCS?
The Income Tax Act requires TCS on certain transactions and goods. Here are a few common examples:
| Nature of Goods/Transactions | TCS Rate |
| Sale of alcoholic liquor, forest produce | 1% |
| Scrap | 1% |
| Tendu leaves | 5% |
| Sale of minerals like coal, lignite, iron ore | 1% |
| Sale of motor vehicle above ₹10 lakh | 1% |
| Overseas remittance or foreign tour packages | 5% |
| 206C(1H): Sale of goods worth more than 50 lakh rupees in a year | 0.1% |
Note: These rates may vary if the buyer does not furnish PAN, in which case the TCS rate can increase up to 5% or more, as per Section 206CC.
Due Dates for Filing Form 27EQ
Form 27EQ is filed every quarter, with the following due dates:
| Quarter | Period | Due Date |
| Q1 | April to June | 15th July |
| Q2 | July to September | 15th October |
| Q3 | October to December | 15th January |
| Q4 | January to March | 15th May |
Filing the form on time ensures the timely credit of TCS to the buyer’s account and avoids penalties.
What You Need to Fill Out on Form 27EQ
Here’s what you need to know to fill out and send in Form 27EQ correctly:
- TAN and PAN of the customerÂ
- PAN number of each consumerÂ
- What goods or deals are
- Details of the invoice and the amount of TCS paid
- Date of payment and pick-up
- Information about the challan (BSR code and challan ID number)
- A list of all the taxes that have been paid
How to Fill Out Form 27EQ
You can fill out Form 27EQ online. Here is a list of the steps:
- Use NSDL’s Return Preparation Utility (RPU) to get the return ready.
- Use File Validation Utility (FVU) to make sure the file is correct.
- Use your Digital Signature Certificate (DSC) to send the file to the TIN-NSDL website after logging in.
- You will get a confirmation or token number for your records once the upload goes through properly.
To file your tax return, you can also go to an approved TIN-Facilitation Center or get help from a Chartered Accountant or tax consultant.
- There is a late fee of ₹200 per day of delay.
- Section 271H says that not filing or filing incorrectly will cost you between ₹10,000 and ₹1,000,000
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Form 27EQ might look like just another compliance form, but it is very important for making sure that TCS rules are followed correctly in India. As a business owner or seller, if you deal with TCS transactions, make sure you collect the right amount, pay it by the due date, and file Form 27EQ every three months. If you pay attention and act quickly, you can stay tax-compliant and escape fines or legal problems that aren’t necessary.
