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TCS Return Filing Online | Expert Assistance for Accurate Quarterly Compliance

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Simple, Transparent TCS Retrun Filling Pricing

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Accurate and timely TCS Return Filing Online to keep your collections compliant and penalty-free.
₹2500/-
₹1500/-
+ GST
&  ₹/- Govt Fee
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Expert Consultation
TCS Calculation Assistance
Quarterly TCS Return Filing (Form 27EQ)
Basic Documentation Support
Email & WhatsApp Updates

Who Needs TCS Return Filling

Under Section 206C of the Income Tax Act, 1961, certain sellers or collectors are required to collect tax at source (TCS) from buyers while selling specific goods or services. Such collectors must also file quarterly TCS returns to report the tax collected and deposited with the government.
Businesses Selling Specified Goods
Any seller, trader, or business entity selling specified goods such as scrap, timber, tendu leaves, liquor, minerals, or motor vehicles (above ₹10 lakh) must collect TCS from buyers at the prescribed rate. These businesses are legally required to file quarterly TCS returns detailing all such transactions.
E-commerce Operators and Online Marketplaces
Under the new provisions of the Income Tax Act, e-commerce operators (like Amazon, Flipkart, etc.) are required to collect TCS on sales made through their platforms. This ensures proper reporting of online transactions and helps in maintaining compliance for digital businesses.
Government Departments and Public Sector Entities
All Central/State Government departments, corporations, and public sector undertakings (PSUs) that collect TCS on certain contracts, leases, or natural resource sales are also liable to file quarterly TCS returns using their TAN.
Tour Operators, Dealers, and Large Transaction Entities
Entities such as foreign travel operators, authorized dealers, and payment service providers are required to collect and file TCS on foreign remittances, tour packages, and high-value transactions as per Section 206C(1G). This helps the government track overseas spending and ensure tax compliance.

TCS Return Filling

TAX Collected at Source (TCS) Simple Guide (with focus on Form 27EQ)

WHAT IS TCS?

Tax Collected at Source (TCS) is a tax the seller collects from the buyer when selling certain goods (like scrap, coal, liquor, or cars over ₹10 lakh).
The seller collects this extra tax amount and pays it to the government.

Buyers can claim this TCS amount as credit when filing their Income Tax Return (ITR).

WHO COLLECTS TCS?

Only registered sellers like:

·       Companies, partnership firms, or cooperative societies

·       Government departments

·       Individuals or HUFs who get their accounts audited under Section 44AB

WHO PAYS TCS?

The buyer pays the TCS amount to the seller along with the price of goods.
Some buyers (like embassies or government offices) are exempt.

GOODS COVERED UNDER TCS

TCS applies only to specific items such as:

·       Alcoholic liquor

·       Scrap

·       Tendu leaves and timber

·       Minerals (coal, lignite, iron ore)

·       Motor vehicles over ₹10 lakh

·       Bullion over ₹2 lakh / jewellery over ₹5 lakh

TCS Rates (FY 2023–24)

Type of Goods/Transaction TCS Rate
Scrap 1%
Liquor 1%
Timber (any source) 2.5%
Tendu leaves 5%
Minerals (coal, lignite, iron ore) 1%
Sale of goods over ₹50 lakh 0.1%
Motor vehicle over ₹10 lakh 1%

WHEN IS TCS COLLECTED?

TCS is collected by the seller when receiving payment or when the sale is recorded, whichever is earlier.

DEPOSITING TCS

Sellers must deposit the TCS amount to the government:

·       Using Challan 281 (online or at a bank)

·       Within 7 days after the end of the month in which TCS was collected

WHAT IS FORM 27EQ?

Form 27EQ is the quarterly TCS return that sellers must file with the Income Tax Department.
It contains details of:

·       Buyer and seller (names, PAN, TAN)

·       Amount of tax collected

·       Type of goods sold

·       Payment and collection dates

DUE DATES FOR FILING FORM 27EQ

Quarter Ending Due Date for Form 27EQ
June 30 July 15
September 30 October 15
December 31 January 15
March 31 May 15

Make sure TCS is deposited before filing Form 27EQ.

 

TCS CERTIFICATE FORM 27D

After filing Form 27EQ, the seller must issue Form 27D (TCS certificate) to the buyer within 15 days.
It shows the TCS collected, deposited, and related details buyers use this for claiming tax credit.

PENALTIES

·       Interest: 1% per month for delay in depositing TCS

·       Late filing fee: ₹200 per day under Section 234E (up to the TCS amount)

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Documents Required for TCS Return Filling

Documents Required for TCS Return Filing
Applicant Type
Documents Required
Basic Business and Registration Details

  • TAN (Tax Collection Account Number) of the collector/seller

  • PAN and Aadhaar of the business or responsible person

  • Business registration details (Company Incorporation Certificate, Partnership Deed, or GST Registration)

  • Contact details – registered mobile number and email ID

Transaction and Collection Records

  • Details of all transactions on which TCS has been collected during the period

  • Invoices or bills showing the value of goods/services and TCS amount

  • Buyer details (Name, PAN, and address) for whom TCS has been collected

  • Rate and nature of collection (as per the applicable section of the Income Tax Act)

Payment and Challan Information

  • Challan Identification Number (CIN) for all TCS payments deposited

  • Date and amount of tax collected and deposited

  • Bank statements or payment proof of TCS remittance to the government

  • Form 27EQ (for quarterly TCS return filing)

Digital and Compliance Documents

  • Digital Signature Certificate (DSC) of the authorized signatory (mandatory for companies and LLPs)

  • Login credentials for TRACES/Income Tax Portal

  • Previous TCS return acknowledgment number (if revising a return)

  • Power of Attorney or Authorization Letter, if filing through a tax professional or consultant

Process of TCS Return Filing

Filing Tax Collected at Source (TCS) returns is a mandatory compliance requirement for all businesses that collect tax from buyers on specified goods or transactions under the Income Tax Act, 1961. The process ensures proper reporting and credit of tax collected to the government.

Step 1 – Collect and Verify Transaction Details

Gather all details of transactions where TCS has been collected, including buyer information, invoice values, and applicable TCS rates. Verify that the tax collected matches the prescribed rates and that challans are correctly deposited to the government.

Step 2 – Prepare and Validate the TCS Return

The TCS return is prepared in Form 27EQ using the prescribed utility or TIN-FC format. It must include all challans, PAN details of buyers, and collection amounts. Validation through the File Validation Utility (FVU) ensures the data meets the Income Tax Department’s technical standards.

Step 3 – Upload and Submit the Return Online

The validated file is uploaded to the Income Tax or Protean (NSDL) portal using the collector’s TAN and Digital Signature Certificate (DSC). After submission, an acknowledgment number is generated as proof of successful filing.

Step 4 – Reconcile and Maintain Records

Once filed, reconcile the TCS return acknowledgment with your financial records and ensure the details reflect correctly in the buyer’s Form 26AS. Maintaining organized records supports audit requirements and future compliance.

Frequently asked Questions

Find answers to common questions about TCS Return Filling, If you can’t find what you’re looking for, feel free to reach out to us!
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TCS (Tax Collected at Source) return filing is the process by which a seller or collector reports details of tax collected from buyers and deposits it with the Income Tax Department on a quarterly basis using Form 27EQ.

Any seller, business, government department, or e-commerce operator that collects tax at source on specified goods or transactions under Section 206C of the Income Tax Act must file quarterly TCS returns.

TCS returns are filed quarterly by the following due dates:

  • Q1 (Apr–Jun): 15th July

  • Q2 (Jul–Sep): 15th October

  • Q3 (Oct–Dec): 15th January

  • Q4 (Jan–Mar): 15th May

Delayed filing attracts a late fee of ₹200 per day under Section 234E and may also lead to additional penalties under Section 271H. Timely filing ensures compliance and proper credit of TCS to the buyer’s account.

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