Expert Guidance by VETRI AUDIT SERVICES PRIVATE LIMITED
Tax Collected at Source (TCS) is an important compliance obligation under the Income Tax Act, 1961. Businesses collecting TCS must file quarterly returns with complete accuracy and within the stipulated due dates. At VETRI AUDIT SERVICES PRIVATE LIMITED, we assist businesses in seamlessly managing their TCS return compliances—from data compilation to filing, certification, and rectification.
What is a TCS Return?
A TCS Return is a quarterly statement filed by the collector (usually a seller) to the Income Tax Department. It provides comprehensive information regarding:
- Tax Collected at Source (TCS) on the sale of specified goods or provision of services
- TCS amount deposited with the government
- Details of buyers (including PAN) from whom TCS was collected
- Challan information related to tax deposit
Types of TCS Returns & Due Dates (FY 2024–25)
| Form | Applicable To | Quarter | Due Date |
|---|---|---|---|
| 27EQ | Collectors of TCS on specified goods/services | Q1 (Apr–Jun) | 31st July 2024 |
| Q2 (Jul–Sep) | 31st October 2024 | ||
| Q3 (Oct–Dec) | 31st January 2025 | ||
| Q4 (Jan–Mar) | 31st May 2025 |
Details Required in TCS Returns
To ensure accurate filing, the following data must be collected and verified:
- TAN (Tax Deduction and Collection Account Number) of the collector
- PAN of the buyer (mandatory to avoid higher TCS rate of 5%)
- Transaction amount on which TCS was applicable
- TCS amount collected and deposited
- Challan details: BSR code, Challan Serial Number, Date of Deposit
- Nature of goods or services on which TCS was collected
Step-by-Step Process to File TCS Returns
Key Compliance Considerations
- Always collect accurate PAN of the buyer to avoid higher TCS rates.
- File returns quarterly and adhere to deadlines to avoid late fees.
- Ensure TCS data matches with Form 26AS for seamless credit to buyers.
- In case of errors, revised returns should be filed without delay.
- Maintain records of TCS certificates issued to buyers.
Penalties & Interest for Non-Compliance
| Type of Non-Compliance | Section | Penalty / Interest |
|---|---|---|
| Late filing of TCS Return | 234E | ₹200/day (max equal to TCS amount) |
| Failure to file TCS Return | 271H | ₹10,000 to ₹1,00,000 |
| Non-collection or late collection | 206C | Interest @ 1% per month & applicable penalties |
| Non-issuance of TCS Certificate | 272A(2)(g) | ₹100/day (max ₹5,000 per certificate) |
Issuance of TCS Certificates
TCS Certificates (Form 27D) must be issued to buyers:
- Within 15 days from the due date of filing the TCS return
- As per the prescribed format notified by the Income Tax Department
- Certificates must include details such as PAN, TAN, amount collected, nature of payment, and date of deposit
Our TCS Compliance Services Include:
- End-to-end TCS return filing (Form 27EQ)
- Validation of buyer PAN and data accuracy
- Preparation and filing using authorized utilities
- Correction and revision of returns, if required
- Timely issuance of TCS certificates
- Expert advisory on TCS applicability & threshold limits
Why Choose VETRI AUDIT SERVICES PRIVATE LIMITED?
- Experienced team of tax professionals
- Accurate & timely compliance guaranteed
- Personalized service with regular updates
- Affordable plans for SMEs, Traders, and Corporates
Contact us today for a consultation!
