Form 27EQ

Tax Collected at Source, or TCS, is a tax that the seller collects from the buyer and sends to the government. In accordance with Section 206C of the Income Tax Act of 1961, the vendor who has collected the tax is required to make a TCS return on Form 27EQ. This form must be completed by business and government deductors as well as collectors. We will cover all a taxpayer needs to know about Form 27EQ in order to file a TCS return in this guide.

What is Form 27EQ?

Form 27EQ, a TCS Return/Statement, contains information on tax collected at the source by the seller when receiving payments from the client on particular commodities. Information about taxes received and paid to the federal government is essentially contained in Form 27EQ. Each quarter, it must be submitted on time, on or before the deadline.

Who Has to Submit Form 27EQ?

According to Section 206C of the Income Tax Act of 1961, Form 27EQ is a quarterly statement that includes information and specifics about tax that is collected at source at the conclusion of each quarter.
The following organizations must send in Form 27EQ:

• Deductors and collectors for corporations
• Deductors and collectors for the government
   

Contents of Form 27EQ

Section 1: The deductor must complete the following fields in this section:
The following details must be provided: 

• TAN Details 
• PAN Details 
• The financial year 
• The year of assessment 
• If a statement has already been filed for the quarter in question, the original statement's provisional receipt number must be provided.

Section 2: The collector must put in the following details and information under this section:

• The collector's name 
• If appropriate, the collector's branch or division 
• Personal and residential information about the collector, including:

         a. Complete address
         b. Phone number
         c. E-mail address

Section 3: The following information about the person in charge of tax collection shall be included in this section: 

• The name of the individual
• The complete address of the person

Section 4: The following details about the tax that is collected at the source and then paid to the Central Government's credit should be entered into this section:

• The code for collection
• The Tax Collected at Source (TCS) amount
• The amount of the surcharge 
• The amount of the education cess 
• The amount of interest assessed 
• Any additional sum
• The entire tax deposit, which is the entirety of the sums indicated above
• The BSR code; -The check number or demand draft number, if relevant
• The date the tax money was deposited 
• The serial number of the challan or transfer voucher

In the event that book entry was used to deposit the tax collected at source, 
 

Section 5:
Details of the taxes that have been collected, the amounts that have been paid, and the pertinent signatures must all be included under this section. Please fill out the annexure that comes with the form with all pertinent information.

Features of Form 27EQ for TCS Returns

The following are Form 27EQ's features:

• Complies with Income Tax Act Section 206; -Is received quarterly
• TAN information must be mentioned -"PANNOTREQD" must be mentioned by government employers
• Non-government employers need to provide the PAN information.
   

Characteristics of Form 27 EQ TCS Return

Form 27 EQ is characterized by the following features:
The tax that has been deducted by the payer and collected at source is specified on Form 27 EQ.

• Form is covered by Income Tax Section 206.
• Form is gathered every three months.
• Personal TAN information must be included in the form.
• Government employers are required to include "PANNOTREQD" on the form.

Similarly, the PAN details must be mentioned in the form by a non-government employer.
 

Steps to Download Form 27EQ

Downloading Form 27EQ is simple. Just follow these guidelines:

• Visit the NSDL's official website.
• Access the 'Downloads' option on the Menu and choose 'E-TDS/E-TCS.'
• After choosing "Quarterly Returns," click "Regular."
• Find Form 27EQ and click on it to download, open, or print it as needed.

Important Change: The deadline for submitting TDS Returns in Forms 26Q, 27Q, and 27EQ for the first quarter of the fiscal year 2023–2024 has been extended to September 30, 2023, in accordance with the Central Board of Direct Taxes (CBDT) Income Tax Circular.

Due Date for Submitting Form 27EQ

The following table lists the due dates for Form 27EQ, which must be filed on a quarterly basis:

Penalty for Late Submission of Form 27EQ

The following penalties will apply if TDS is deposited beyond the deadline or if TDS returns are filed incorrectly:

• Penalty; late filing fees
• Appetite
   
• Fees for late filing:
  If you do not submit your TDS returns by the deadline, you will be charged ₹200 per day in late filing fees. There will be a fee for each day past the deadline up until the day your return is submitted. The TDS amount will, however, be the maximum amount of fees that you will be required to pay.
  For instance, if the amount owed for TDS is ₹7,500 on May 14 and the payment is made on November 19, there will be 190 days in total between those dates. Hence, ₹38,00 (₹200 a day for 190 days) will be the total.
  However, since your TDS payable amount is Rs.7,500, your late filing fees will be only Rs.7,500 and not Rs.38,000. But, you will be charged an interest to you.
   

Conclusion

27EQ form is used for reporting TCS (tax collected at source) on sale of goods. It also applies to withholding tax on various types of income payments to non-resident entities, such as interest, dividends, royalties, & fees for technical services. Agricultural income is exempt from TCS under 27eq form. To file your 27EQ TCS return, you need to gather all relevant details related to form 27EQ TCS transactions. Ensuring accuracy in your form 27EQ TCS submission is crucial for compliance. Once you have prepared your 27EQ TCS return, submit it before deadline to avoid penalties. Income Tax Department oversees Tax Collection at Source to ensure proper Tax Compliance. They provide Taxpayer Services, including assistance with Tax Filing & issuing TDS Certificates. Tax Payment processes are streamlined to facilitate efficient compliance with tax regulations.