TCS Filing Simplified: Income Tax Department Replaces Form 27EQ with New Form 143

The Income Tax Department has introduced a major change to simplify the process related to tax collection; the old Form 143 has been replaced by the new Form 27EQ, effective from April 1, 2026. Its objective is to make TCS (Tax Collected at Source) reporting simpler and more systematic.

What is Form 143?

Form 143 is a quarterly statement that needs to be filed by those who collect TCS on specified transactions. These include the sale of goods, scrap, liquor, foreign travel packages and overseas remittances. So, all such transactions will now be reported through this new form.

How is the new form structured?

The form has been divided into three parts:

• Part A contains basic details of the collector.
• Part B gives details of the tax collected and deposited.
• The annexure contains detailed information on each transaction, such as PAN and tax amount.

This type of structure allows information to be recorded in a clear manner and reduces confusion. The department has added features like auto-filled data, drop-down options, and real-time error checks. Because of this, chances of mistakes are expected to reduce, and the process should become faster. Also, surcharge and cess have now been combined into a single column, which simplifies reporting.

No change in filing deadlines

Despite the introduction of the new form, the deadline for filing quarterly Returns will remain the same as before. Businesses must file within the stipulated time. For the last quarter of FY 2025-26, the old Form 27EQ will still be applicable. The new Form 143 will be used from the next financial year onwards.