The Central Board of Direct Taxes (CBDT) has introduced Draft Form No. 143, a new format for filing quarterly statements of Tax Collected at Source (TCS) under Section 397(3)(b).
The proposed form seeks to streamline reporting obligations for both Government and Non-Government collectors, while enhancing transparency and traceability of tax collection transactions.
Applicability of Form No. 143
Form 143 is required to be filed by every person responsible for collecting tax at source for each quarter ending:
- June
- September
- December
- March
The form applies to collectors covered under various provisions of Section 394 and Section 397 of the Income-tax Act, 2025.
Structure of Draft Form 143
The draft form is divided into two major sections:
Part A: Particulars of the Collector
This section captures:
- Type of collector (Government / Non-Government)
- Name and address
- PAN (mandatory for non-Government collectors)
- TAN
- Contact details
- Tax year
- Whether the statement is original or revised
- AIN (in case of Government collectors)
It also requires details of the person responsible for TCS compliance.
Part B: Tax Collection and Deposit Details
This section includes:
- Total tax collected (including surcharge and health & education cess)
- Interest
- Late fee under Section 427
- Penalty, if any
- Total amount deposited
- Mode of payment (Challan / Book Adjustment)
- BSR code / Form 137 reference
- Challan serial number
- Date of deposit
- Minor head details
Government DDOs are required to mention amounts remitted through PAO/CDDO/DTO, while others must report challan-based deposits.
Annexure: Collectee-wise Breakup of TCS
One of the most detailed components of Draft Form 143 is the Annexure, which mandates collectee-level reporting.
The annexure requires disclosure of:
- PAN of collectee
- Name
- Residential status
- Collectee code
- Whether opting out of taxation regime under Section 202(1)
- Amount received/debited
- Date of receipt
- Collection code
- Rate of TCS
- Total tax collected
- Reasons for lower or higher collection
- Certificate details under Section 395(3)
- TDS applicability under Section 394(5)
This granular reporting reflects a compliance-focused approach aimed at improved data reconciliation through TIN 2.0/TRACES systems.
Updated Collection Codes Under Section 394
The draft form includes an extensive list of collection codes covering transactions such as:
- Sale of alcoholic liquor
- Sale of scrap, minerals, timber, tendu leaves
- Sale of motor vehicles above threshold
- Luxury goods including wrist watches, handbags, shoes, sportswear, sunglasses
- Overseas tour packages
- Liberalised Remittance Scheme (LRS) transactions
- Use of parking lots, toll plazas, mines
Each transaction category is mapped to a specific section code (e.g., 1068 to 1092).
Key Compliance Highlights
- PAN mandatory for non-Government collectors
- Exact challan/transfer voucher details must match TIN 2.0/TRACES portal
- Separate reporting of late filing fee
- Mandatory declaration by responsible person
- Detailed reason codes for non-collection, lower collection or higher collection
The form also integrates new references to provisions such as Sections 394, 395, 397, 400, and 402 under the Income-tax Act, 2025.
Impact on Businesses and TCS Collectors
The introduction of Draft Form 143 signals:
- Enhanced reporting accuracy
- Greater scrutiny of high-value transactions
- Stronger integration with digital tax administration systems
- Increased compliance responsibility for sellers, authorised dealers, and other collectors
Businesses dealing in luxury goods, overseas tours, LRS remittances, scrap, minerals, and specified goods must revisit their TCS reporting systems to align with the proposed format.
Conclusion
Draft Form No. 143 represents a structured and compliance-driven upgrade to the quarterly TCS reporting mechanism under the Income-tax Act, 2025. With detailed collectee-wise disclosures and expanded transaction codes, the new format is poised to strengthen transparency and enforcement in TCS administration.
Stakeholders should carefully review the draft and prepare for implementation once formally notified.
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