The Income Tax Department has introduced a new simplified form for reporting Tax Collected at Source (TCS) to enhance compliance for businesses and collectors. Effective April 1, 2026, Form 143 has replaced the previous Form 27EQ.
According to an official announcement, the older Form 27EQ has been substituted with the new Form 143, designated as the Quarterly statement of TCS filed by the collector.
This initiative is part of a broader strategy to streamline tax procedures within the updated Income-tax framework and minimize filing errors.
Form 143 requires quarterly submission by entities responsible for TCS collection on specific transactions such as the sale of goods, scrap, liquor, foreign travel packages, and overseas remittances. This consolidation aims to standardize reporting procedures into a more user-friendly format.
The new form is structured into three sections—Part A for collector details, Part B focusing on tax collection and deposits, and an annexure featuring transaction-level specifics like PAN, tax collected, and other pertinent data for each collectee. This layout is intended to enhance filing clarity and organization.
Noteworthy enhancements include technological features like auto-populated data, dropdown menus, and real-time error validations aimed at reducing inaccuracies and expediting the process. Additionally, the consolidation of various tax components into a single column, encompassing surcharge and cess, simplifies reporting.
Despite the form update, the quarterly filing deadlines remain unaltered. Businesses are required to adhere to the existing timelines for quarterly return submissions. It is important to highlight that the old Form 27EQ will apply for the final quarter of FY 2025–26, with the new Form 143 being applicable for subsequent financial year filings.
Overall, the revised form is designed to streamline the tax filing process, providing clearer fields and built-in validations to save time and alleviate compliance burdens for users.