Form 27EQ – TCS Return for Tax Collected at Source

Complete guide to Form 27EQ filing requirements, due dates, and compliance

What is Form 27EQ?

Filing Form 27EQ is a statutory requirement for any entity or organisation that collects tax (TCS) on sale of goods or services under Section 206C. TCS is applicable to specified goods and services such as alcohol, scrap, tendu leaves, parking lots, toll plazas, overseas remittances, sale of motor vehicles and luxury goods exceeding certain thresholds. The form is submitted quarterly and provides details to the Income Tax Department to ensure accurate reporting of these transactions and the corresponding tax collected.

The return includes the details of the TCS collected along with the challan details for the amount deposit. Form 27EQ requires quarterly reporting of collectee-level TCS data along with corresponding challan details. Each entry must be linked with the applicable TCS section and collection code, and should reflect the nature and amount of the payment.

Applicability of Form 27EQ

Form 27EQ must be filed by:

Government collectors
Corporations and companies
Firms, associations, or any other entity collecting TCS

TCS applies to certain payments or receipts involving:

Sale of specified goods (e.g., scrap, tendu leaves, minerals) [Section 206C(1)]
Lease, license or contract of parking, toll plaza or mining [Section 206C(1C)]
Cash Receipts for Goods and Services [Section 206C(1E)]
Sale of motor vehicle and Luxury goods exceeding Rs. 10 lakh [Section 206C(1F)]
Foreign Remittances and Tour Packages [Section 206C(1G)]

TCS Rates under Section 206C

Code	Nature of Payment
A	Alcoholic Liquor for human consumption
B	Timber or any other forest produce
C	Timber obtained under any other mode other than forest lease
E	Scrap
F	Parking Lot
G	Toll Plaza
H	Mining & Quarrying
I	Tendu Leaves
J	Minerals
L	Sale of Motor Vehicle (exceeding Rs. 10 Lakh)
M	TCS on sale in cash of any goods (other than bullion / jewellary) (Only applicable for F.Y. 2016-17)
MA	Sale of wrist watch (exceeding Rs. 10 Lakh)
MB	Sale of art piece such as antiques, painting, sculpture (exceeding Rs. 10 Lakh)
MC	Sale of collectibles such as coin, stamp (exceeding Rs. 10 Lakh)
MD	Sale of yacht, rowing boat, canoe, helicopter (exceeding Rs. 10 Lakh)
ME	Sale of pair of sunglasses (exceeding Rs. 10 Lakh)
MF	Sale of bag such as handbag, purse (exceeding Rs. 10 Lakh)
MG	Sale of pair of shoes (exceeding Rs. 10 Lakh)
MH	Sale of sportswear and equipment such as golf kit, ski-wear (exceeding Rs. 10 Lakh)
MI	Sale of home theatre system (exceeding Rs. 10 Lakh)
MJ	Sale of horse for horse racing in race clubs and horse for polo (exceeding Rs. 10 Lakh)
N	TCS on providing of any services (other than Ch-XVII-B) (Only applicable for F.Y. 2016-17)
O	Overseas Tour Program Package (5% till 10 Lakh or 20% above 10 Lakh)
Q	LRS-other purposes – Liberalized Remittance Scheme (Threshold Limit – 10 Lakh)
T	LRS – Education or Medical Treatment not covered under Code P (Threshold Limit – 10 Lakh)

Latest TDS Rate Chart

What are the details to be filled in Form 27EQ?

Details of the collector: TAN, PAN, name, and other details
Challan details: BSR Code, date of payment, challan serial number, TCS amount
Collectee details: PAN, name, nature of payment, amount paid, TCS rate, and tax collected

There is no distinction between resident and non-resident collectees in this form; it is common for all TCS-related filings.

In cases where TCS is not collected at a normal rates or lower rates, valid reasons or exemption codes must be specified under 'Remarks'.

Details about reasons for lower/no deduction

What are the filing due dates for Form 27EQ?

Quarter	Due Date
April – June (Q1)	15th July
July – September (Q2)	15th October
October – December (Q3)	15th January
January – March (Q4)	15th May

What is the TCS rate when PAN Is not available?

If the valid PAN is not furnished or is incorrect, tax collection (TCS) is at a higher rate – typically twice the rate of TCS or 5%, whichever is higher as per the provisions of the Income Tax Act. This rule is enforced under Section 206CC.

How is interest calculated for Late Collection or payment of TCS?

If TCS is not collected: 1% per month from the date on which it was collectible until the date of actual collection
If TCS is collected but not deposited: 1.5% per month or part thereof from the date of collection to the date of payment.

What are the Penalties for late filing of Form 27EQ?

Late Filing Fee – Section 234E

A fee of Rs. 200 per day is applicable until the return is filed, capped at the told amount of TCS collected within the Return.

Penalty – Section 271H

Penalty between Rs. 10,000 and Rs. 1,00,000 may be levied for incorrect or delayed filing.
Understanding of Section 271H

Prosecution for Non-Deposit

Failure to deposit collected tax may attract imprisonment of 3 months to 7 years, along with a fine.

Frequently Asked Questions – Form 27EQ

For us TCS is applicable for different payment types having multiple sections, do I need to file Form 27EQ for each Section separately?

No. You can file only one Return per quarter. While preparing the Return data for submission, within each record you will have to provide the section under which collection is made.

What date is to considered for the purpose of TCS?

As per the rules, the collection date would be either the 'date of collection' or 'date of debit' whichever is earlier.

For the tax collection, how do I deposit this amount?

Typically, the deposit is made online through banking channels. The process of making the payment has to be initiated from the Income Tax website which he will transfer you to the selected bank for completing the payment. Once successfully done, the bank provides you the payment receipt 'Challan' which contains important information that will be required for filing the Returns.

What is the due date for making the TCS deposit?

For all deductions during the calendar month, the total amount should be deposited within the 7th of the following month. Say, for deductions in June, it should be deposited by 7th July. For the month of March, the TDS deposit is extended till 30th April - but this is not applicable for TCS.

Before filing, can I check to be sure that the PANs are all correct?

Yes. All PANs within a TDS Return can be verified online through the Income Tax websites. Alternatively, the TDSMAN suite of products has a facility to validate all PANs seamlessly by integrating to these websites.

What is the process of filing the TCS Return?

TCS Returns can be filed either online at the Income Tax website or submitted offline to any one of the authorized TIN facilitation centres (TIN-FC) located across India. After successful submission in either mode, you will receive an acknowledgement.

For some reason I was not able to file my Form 27EQ within the due date, can I file it after that?

Yes, in case you could file on time, you must file at the later date. For such delayed filing there is a penalty of Rs. 200/- per day of delay. However, total amount of the penalty cannot exceed the TCS amount within the Return.

After filing the TCS Return, I realized there was some error. How can I rectify this?

You can rectify the filed Form 27EQ either by filing a Correction Return or directly make corrections on-line on the Income Tax website. However, making corrections has some defined limitations which needs to be strictly followed. This would take care of additions, modifications, etc. as desired.

Is there any time limit for filing Correction Returns?

Within the defined limitations, you can file Correction Returns as many times. No restriction has been specified in this regard. However, from 1st April '25, now corrections can only be done for Returns filed for the last six financial years only.

Who is required to file Form 27EQ?

Any organisation or government body that collects tax under Section 206C must file Form 27EQ quarterly.

Is it mandatory to file Form 27EQ even if no TCS is collected in a quarter?

No. NIL return is not required unless a TCS transaction has occurred.

Can Form 27EQ be revised after submission?

Yes, it can be revised to correct errors or add missing details.

What is the penalty if TCS is collected but not deposited?

Besides interest, the collector may face prosecution with imprisonment and a fine.

What happens if PAN is not provided by the collectee?

TCS must be collected at a higher rate as specified under Section 206CC.

Some of the Similar Forms:

What is Form 24Q?

What is Form 26Q?

What is Form 27Q?