படிவம் 27EQ
Understanding Tax Collected at Source (TCS) might feel a bit tricky initially, but don't worry—we're here to simplify it for you. In simple terms, TCS is like a tax collected by the seller from the buyer, and this amount is then handed over to the government. It's like the seller acting as a tax collector on behalf of the government. Now, let's explore the fundamental aspects of TCS and Form 27EQ together.
Understanding Form 27EQ
Form 27EQ is the document where all the nitty-gritty details about the Tax Collected at Source by the seller are recorded. This form holds vital details about the tax collected and forwarded to the central government. Sellers need to submit it every quarter, and it's crucial to stick to those submission deadlines.
What is Tax Collected at Source?
Simply put, TCS is the direct tax or income tax collected by the seller while selling a product at a specified price. It's a way for the government to ensure that taxes are paid promptly at the source, i.e., during the sale itself.
The difference between TDS and TCS
Form 27EQ isn't just for one group of people; it applies to both corporate and government collectors and deductors. These are the entities responsible for collecting and depositing TCS.
Who Needs to File Form 27EQ for TCS Returns?
Here are the types of organizations and individuals that must file Form 27EQ for TDS returns:
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Corporate collectors and deductors including Firms and LLPs
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Government collectors and deductors
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Individuals and HUF having turnover above 1 Cr.
Specified Goods Subject to TCS
TCS isn't applicable to all goods. It's collected on specific items, including:
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Alcoholic Liquor for human consumption
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Tendu leaves
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Timber obtained under a forest lease
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Timber obtained by any other means
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Other forest produce (excluding timber and tendu leaves)
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Scrap
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Minerals like coal, lignite, or iron ore
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Sale of goods when the consideration exceeds INR 50,00,000 during a Financial year
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Sale of Cars (New and Old) when the sale value is above INR 10,00,000
Details Needed for Form 27EQ
Filling out Form 27EQ is relatively straightforward if you have the necessary information on hand:
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Collector/Seller: TAN (Tax Deduction and Collection Account Number), PAN (Permanent Account Number), Name, Address, and Contact Details.
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Responsible Person: Name, PAN, Address, and Contact Details.
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Challan: Challan serial number, BSR Code (Bank and Branch), TDS, Surcharge, and Education Cess.
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Deduction: Buyer's Name, PAN, Total purchase value, TCS amount collected and deposited.
Sections of Form 27EQ
The form is divided into sections for easy organization:
Section 1: Contains details like TAN, PAN, financial year, and assessment year.
Section 2: Collectors provide their information here.
Section 3: Information about the person in charge of tax collection.
Section 4: Tax collection and deposit details, including codes, amounts, and dates.
Section 5: Taxpayer details and signatures.
Due Dates for Form 27EQ
Meeting deadlines is crucial when it comes to Form 27EQ. Below are the deadlines for each quarter:
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Q1 (April - June): On or before 15th July
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Q2 (July - September): On or before 15th October
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Q3 (October - December): On or before 15th January
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Q4 (January - March): On or before 15th May
Check the Due Date Calendar for Income Tax and GST in India.
How to Download Form 27EQ
Downloading Form 27EQ is a breeze. Just follow these steps:
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Visit the NSDL official website.
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Navigate to the 'Downloads' tab on the Menu and choose 'E-TDS/E-TCS.'
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Select 'Quarterly Returns' and click 'Regular.'
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Find Form 27EQ, click to open it, and download or print as needed.
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Important Update:
Kindly be aware that the deadline for filing TDS Returns in Form 26Q, 27Q & 27EQ for the first quarter of the financial year 2023-24 has been postponed to September 30, 2023, in accordance with the Income Tax Circular issued by the Central Board of Direct Taxes (CBDT).
Penalties for Late Submission
Filing Form 27EQ on time is crucial to avoid penalties. Late submission can result in:
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A late fee of Rs. 200 per day until filing, with the cumulative late fee not exceeding the TCS amount.
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Non-filing penalties range from Rs. 10,000 to Rs. 1,00,000, depending on the severity of the delay.
To sum it up, Form 27EQ plays a crucial role in making sure taxes are collected and paid seamlessly. When sellers grasp the process and meet the deadlines, they not only sidestep penalties but also play a part in maintaining an efficient tax system.
Form 27EQ is essential for TCS (Tax Collected at Source) compliance in India, primarily for the sale of goods. It is used to report and file TCS returns. The collection code for TCS on the sale of goods is specified within this form. Understanding the correct collection code is crucial when making payments and filing the 27EQ return. This form serves the purpose of recording TCS on goods and ensuring tax compliance. Be aware of the 27EQ TDS return due date to meet your obligations and avoid penalties. Form 27EQ plays a significant role in the TCS process, providing information on the total value of purchases subject to TCS.