Form 27EQ is a quarterly statement form that contains all the details of the Tax collected at source from the collector and deducted from the buyers or payers in a specific period. Form 27EQ must be submitted at the end of every quarter from government and corporate collectors and deductors under section 206C of the Income Tax Act, 1961.
A lot of people tend to get confused between Form 27Q and 27EQ. If you too usually get confused between the two, there is a simple way to remember which form is which. You must remember that form 27Q is relevant to quarterly TDS payments made to NRIs and foreigners except for salary statements under section 200(3) of the Income-tax Act, 1961, and form 27EQ is related to the quarterly TCS statement submitted by government collectors and deductors.
Form 27EQ has some specific features apart from 27Q. Let’s have a look:
The biggest problem all the business owners or people face is that they do not know who can submit what kind of form. Same is the case with Form 27EQ. Form 27EQ is related to the TCS statement, it specifies the quarterly statement of the tax collected at source from the buyers. Corporate and government authorities whose previous year’s turnover is more than Rs.10 Crore are supposed to pay and collect TCS.
There are only a few people that are required to submit form 27EQ, here is the list of personnel who are required to fill the form:
The income tax department has set the due date to submit form 27EQ for every quarter in advance:
Form 27EQ Submission Quarterly | Due Date |
1st quarter ends at 30th June | 31st July of every year |
2nd quarter ends at 30th September | 31st October of every year |
3rd Quarter ends at 31st December | 31st January of every year |
4th Quarter ends at 31st March | 31st May of every year |
Form 27EQ is divided into 5 main sections, here we will tell you in detail about every section and its content.
Section 1
The first section demands all the necessary information of the deductor. Deductors must enter all the following details ask in this section.
Section 2
This section is mainly for collectors. You will be needed to submit all the necessary information and details that is needed by the collector.
Section 3
This section requires the detail of the person who collected the tax at the time.
Section 4
This section requires all the statements of the tax collected at the source for the respective quarter. Also need to mention the details of tax that has already been paid to the credit of the central government.
Section 5
In the last and final section, a collector or deductor has to mention all the details of the tax collected at the source and details of the amount that has been paid with the signatures in the separate sections. All the above details need to be mentioned in the annexure given on the following page.
Now, deductors and collectors must submit the form 27EQ on the electronic platform from where the deductor/ collector or seller can export these details while filing the TDS return form.
Form 27EQ contains all detailed information of the amount collected and paid including surcharge, education cess, and amount of the interest that has been applied on goods of the particular sales for every statement in every quarter. The electronic transfer of this information helps to calculate the amount of the TDS return.