Form 27EQ: Sections, Features, Eligibility, and Due Date
To increase the efficiency of the tax collection process in India, the government introduced TCS or tax collected at source. Under this mechanism, a seller collects taxes from a buyer when the latter purchases something. Upon collection, the seller is liable to deposit the TCS amount with the Income Tax Department within a given time limit.
Furthermore, as per Section 206C of the Income Tax Act, all government and non-government collectors and deductors have to submit Form 27EQ at the end of every quarter. The purpose of Form 27EQ is to act as a statement providing information regarding the tax collected at source. A failure to do so can lead to a hefty penalty.
Keep reading further to learn more about Form 27EQ guidelines.
Who Has to Submit Form 27EQ?
Filing correct forms with proper details within the due date can be a daunting task. Fortunately, only the following individuals and entities have to submit Form 27EQ, specifying details of tax collected at source from buyers:
- Government deductors and collectors
- Non-government or corporate deductors and collectors
Sections of Form 27EQ
Contents of Form 27EQ are categorised into these sections:
- Section 1
A deductor needs to fill in the following details under this section of the form:
- TAN
- PAN
- Financial year
- Assessment year
- Mention whether the submission of quarterly statements has taken place or not.
- If yes, then the person needs to provide a provisional receipt number of the original statement.
- Section 2
A collector needs to fill in these details under this section of the form:
- Collector’s name
- Collector’s division or branch, if applicable
- Personal and residential details: Address, phone number, and email address
- Section 3
The person in charge of the collection of taxes needs to fill in the following details under this section of the form:
- Name
- Full address
- Section 4
This section requires information regarding tax collected at the source and tax deposited with the Central Government.
- Collection code
- Tax collected at source amount
- Education cess amount
- Surcharge amount
- Amount collected through interest charged
- Other amounts, if any
- Sum total of all amounts mentioned above, i.e., total tax deposit
- BSR code
- Date of depositing the total tax amount
- Cheque number or demand draft number
- Transfer voucher or challan serial number
- Mention whether the deposition of TCS amount took place via book entry
- Section 5
Lastly, under this section, a taxpayer has to specify details about tax collected and tax paid in the annexure provided with this form. They also have to provide appropriate signatures.
Features of Form 27EQ for TCS Returns
Here are the key characteristics of Form 27EQ:
- The purpose of this form is to inform the Income Tax Department about the tax collected at the source and deducted by the seller.
- Section 206 of the Income Tax Act sets the guidelines and governs the submission of Form 27EQ.
- Government and corporate deductors and collectors have to conduct Form 27EQ filing quarterly.
- Having a Tax Deduction and Collection Account Number or TAN is mandatory for individuals submitting this form.
- Government deductors need to mention ‘PANNOTREQD’ in the form. Meanwhile, non-government deductors need to provide PAN details in the form.
Steps to Download Form 27EQ
You can download Form 27EQ by following these easy steps:
Step 1: Visit NSDL’s official website.
Step 2: On the top navigation bar, scroll to ‘Download.’ Select ‘E-TDS/E-TCS’ from the dropdown menu.
Step 3: Next, choose ‘Quarterly Returns’ and ‘Regular.’
Step 4: As a new page appears, scroll down to the ‘Forms’ column and select ‘Form 27EQ.’
Step 5: The form will open up, and in the top right corner, you have the option to download or print it.
Due Date for Submitting Form 27EQ
Government and corporate tax collectors and deductors need to submit Form 27EQ while filing TCS returns quarterly. Due dates for submission are as follows:
| Quarter | Period | Due Date |
| 1 | April 1 to June 30 | July 31 |
| 2 | July 1 to September 30 | October 31 |
| 3 | October 1 to December 31 | January 31 |
| 4 | January 1 to March 31 | May 31 |
Also Read: Form 26AS: How To Download Form 26AS In 5 Simple Steps
Penalty for Late Submission of Form 27EQ
As one submits Form 27EQ while filing TCS returns, any delay in submission leads to the same penalty that is levied when there’s a delay in filing TCS returns. Thus, the penalty is as follows:
- Late submission of Form 27EQ under Section 234E
Late fee of Rs. 200 per day until the collector or deductor files the returns along with this form (the cumulative late fee levied on the collector cannot be more than the TCS amount.)
- Non-filing of Form 27EQ under Section 271H
If one does not submit this form within the due date, an Assessing Officer can decide to levy a penalty on them. This penalty can range from Rs. 10,000 to Rs. 1,00,000, depending on the gravity of the offence.
Also Read: Form 15G & 15H: How To Save TDS On Interest Income
Final Word
Form 27EQ plays a crucial role in ensuring that tax collection and deposition are successful. It not only provides information regarding tax collected but is also vital for TCS returns filing. Thus, collectors should go through the above-mentioned details to ensure the successful submission of Form 27EQ before the due date.
FAQs on Form 27EQ
Ans: The roles played by Form 27Q and 27EQ are quite similar. However, the former has to be filled by NRIs or foreigners as a declaration of TDS returns. Meanwhile, the latter is relevant for quarterly TCS statements submitted by the government and corporate collectors.
Ans: TDS and TCS are tax collection mechanisms under the Indian taxation system. The former is where a deductor collects taxes from a deductee’s source of income while making a payment to them. Meanwhile, the latter is where a seller collects taxes when they sell something to a buyer.
Ans: TAN is a ten-digit alphanumeric code issued by the Income Tax Department of India. However, only those persons that deduct or collect taxes on behalf of the government are liable to possess a TAN.
Ans: Yes, a taxpayer can claim TCS refunds in a financial year. Buyers with an annual income below Rs. 2.5 lakh have no tax liability; they do not have to pay TCS as well. In this case, they can claim TCS refunds.
Ans: If a seller fails to collect TCS on time, the person will be liable to pay interest of 1% per month till the collection of tax. The seller might suffer from extra penalties if they are unable to file TCS returns and submit Form 27EQ on time.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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