1. Legal Basis
- Proviso to Section 206C(3): Requires sellers/collectorsto submit a statement of TCS collected and deposited.
- Rule 31AA(1): Specifies the format, due date, and procedurefor filing this statement.
2. Key Compliance Requirements
A. Who Must File?
- All TCS collectors(businesses, individuals, government agencies) under Section 206C.
- Exemptions:
- Government departments submitting Form 24G.
- Small sellers (turnover ≤ ₹10 crore) unless covered under Section 206C(1H).
B. Due Date
| STATEMENT TYPE | DUE DATE |
| Quarterly (Form 27EQ) | 15th of next month post-quarter (e.g., July 15 for April–June) |
| Annual Reconciliation | May 31 of the following financial year |
C. Contents of Statement
- Collector Details: Name, TAN, PAN.
- Buyer Details: PAN, amount paid, TCS rate.
- Deposit Proof: Challan number, BSR code, deposit date.
- Adjustments: Corrections from previous filings.
D. Mode of Filing
- Electronically: Via TRACES portal(NSDL).
- Digital Signature (DSC): Mandatory for companies/LLPs.
3. Penalties for Non-Compliance
| DEFAULT | CONSEQUENCE |
| Late Filing | ₹200/day (max. TCS amount) under Section 234E |
| Incorrect Details | ₹10,000–₹1,00,000 penalty (Section 271H) |
| Non-Filing | Prosecution (Section 276BB) |
4. Practical Workflow
- Collect TCS: At the time of sale/payment.
- Deposit by 7th of next month.
- File Form 27EQ quarterly(by the 15th).
- Issue Form 27D(TCS certificate) within 15 days of filing.
- Annual Reconciliation: Verify with Form 26AS/AIS.
5. Recent Updates (2024–25)
- AIS-TCS Integration: Mismatches flagged in real-time.
- Budget 2025: Stricter PAN validation for TCS credits.
Key Points
✔ File quarterly Form 27EQ by the 15th of next month.
✔ Reconcile annually by May 31.
✔ Use TRACES for corrections and tracking.
✔ Penalties apply for delays/errors.
