What is Form 27EQ ?
Form 27EQ is a quarterly statement of Tax Collected at Source (TCS), which is filed by entities that collect tax at the source of income, such as sellers of specified goods or service providers. It is required to be submitted by the person or organization collecting TCS (like a seller or service provider) to the Income Tax Department. The form reports the amount of TCS collected and deposited with the government.
Key Features of Form 27EQ:
Quarterly Filing: Form 27EQ must be filed quarterly by the collectors of TCS.
Purpose: It provides a record of the TCS deducted during a specific quarter and its deposit details.
Taxpayer's Responsibility: The entity that collects TCS is responsible for filing this form.
Components of Form 27EQ:
Collector's Details:
PAN (Permanent Account Number) of the collector.
TAN (Tax Deduction and Collection Account Number) of the collector.
Name and contact information of the collector.
TCS Details:
Details of the tax collected from buyers or customers on transactions related to specific goods or services (e.g., sale of goods like scrap, alcohol, etc.).
Amount of tax collected and deposited with the government.
Quarterly Breakdown:
Information about the TCS collected for the relevant quarter.
When is Form 27EQ filed?
Quarterly Filing: Form 27EQ must be submitted for each quarter of the financial year.
Q1: April to June
Q2: July to September
Q3: October to December
Q4: January to March (final year summary)
Importance of Form 27EQ:
Compliance: It ensures that TCS is reported correctly and is in compliance with tax laws.
Transparency: Helps both the taxpayer and the Income Tax Department track TCS payments.
Tax Filing: Provides necessary details for both the collector and payee when filing tax returns.
Penalty for Non-Compliance:
Late Filing Fee: A penalty of ₹200 per day is applicable for delayed filing of Form 27EQ.
Interest: Interest may be levied on the delayed deposit of TCS.
Summary:
Form 27EQ is a key document for reporting TCS, and businesses or individuals who collect tax at source must file it quarterly to remain compliant with Indian tax laws.