The Income Tax Department, under the Central Board of Direct Taxes (CBDT), has officially introduced Form No. 143, the new quarterly statement for Tax Collected at Source (TCS), replacing the erstwhile Form No. 27EQ. The new form takes effect from April 1, 2026, under the provisions of the Income Tax Act, 2025 and Income Tax Rules, 2026.
What is Form No. 143 (Earlier Form 27EQ)?
Form No. 143 is a quarterly statement filed by collectors, entities obligated to collect tax at source, to report TCS on specified goods and transactions. The form covers a wide range of transactions, including the sale of scrap, tendu leaves, liquor, forest produce, parking lots, toll plazas, mining and quarrying, overseas remittances, foreign tour packages and the sale of goods, among others, under the Income-tax Act, 2025.
Key Transition Note:
- For FY 2025-26 (AY 2026-27), the Q4 TCS return (January-March quarter) shall continue to be filed in the erstwhile Form No. 27EQ.
- The new Form No. 143 applies from FY 2026-27 onwards (i.e., from the April-June 2026 quarter filed in Q1 FY 2026-27).
Why Was Form 27EQ Replaced?
The Income Tax Department introduced simplified tax forms under the Income-tax Act, 2025, effective April 1, 2026, to improve ease of compliance for all stakeholders. As part of its "Taxpayer Information Series," the department selected frequently used forms, particularly those that underwent significant business process re-engineering, for simplification. Form No. 143 (erstwhile 27EQ) is one such form, reengineered to leverage modern technology and reduce the compliance burden on collectors.
Who Must File Form No. 143?
Every collector responsible for collecting tax at source on the specified transactions mentioned above is required to file this quarterly return. This includes both government and non-government entities operating in sectors such as minerals, liquor, scrap trade, foreign remittances, and goods sales under applicable TCS provisions.
Quarterly Filing Schedule: Due Dates at a Glance
| Quarter | Period Covered | Due Date for Filing |
|---|---|---|
| Q1 | April - June | 31st July of the Tax Year |
| Q2 | July - September | 31st October of the Tax Year |
| Q3 | October - December | 31st January of the Tax Year |
| Q4 | January - March | 31st May of the Tax Year immediately following the Tax Year in which collection is required to be made |
Structure of the New Form No. 143
As per the Income Tax Rules, 2026, Form No. 143 is structured into three distinct parts:
- Part A: Captures collector identity and the person responsible for collection — including identification, contact details, tax year, and filing particulars.
- Part B: Records TCS amounts collected and deposited to the Central Government, including challan or book adjustment information.
- Annexure: A single annexure for all four quarters, capturing collectee-wise TCS details: PAN, residential status, transaction details, applicable rates, lower collection certificates u/s 395(3), and more.
Details Required to File Form No. 143
Collectors must have the following information ready before filing:
| # | Category | Details |
|---|---|---|
| 1 | Transaction Details | Nature of goods/transaction, amount, applicable TCS rate |
| 2 | Collectee Details | PAN, residential status, name, address of the collectee |
| 3 | Challan / BIN Details | Challan number, Bank BSR code, date of deposit, Book Identification Number (BIN) for government payments |
Key Features of the New Form and Benefits to Stakeholders
| Sl. No. | Key Feature of New Form | Benefit to Stakeholders |
|---|---|---|
| 1 | Smart Form: Auto-population/pre-filling of relevant details; real-time validations; drop-downs and date pickers; API and database integration; check-box based smart verification; standardisation of name and address fields | Auto-populated fields and drop-downs reduce errors and simplify compliance. Smart Forms improve process clarity, minimise mismatches, and enable faster processing. |
| 2 | Simplified Tax Column : Tax, Cess, and Surcharge details earlier reported under three separate columns have been merged into one single column - Total Tax Collected | Reduces complexity, saves time and effort for the user and eases compliance. |
Additional technology enhancements
- Convenience: Enhanced convenience for collectors through reduced and simplified fields with clear, plain language.
- Accuracy: Improved process clarity through smart forms to reduce errors, mismatches and enable faster processing.
- Auto-fill: Auto-populated fields and drop-downs reduce manual data entry errors and ease the overall compliance procedure.
- Efficiency: Removal of outdated and redundant columns increases convenience for collectors by way of a leaner form.
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