Income Tax Form 143 Replaces Form 27EQ: New Quarterly TCS Form Explained

The Income Tax Rules, 2026 have introduced Form No. 143 as the new quarterly statement for reporting tax collected at source. This form replaces the earlier Form 27EQ, which was used for many years by collectors to report TCS transactions. The change forms part of a broader reform aimed at improving compliance, reducing duplication, and strengthening the tax reporting system.

The Income Tax Department has clarified that the new forms will come into effect from April 1, 2026. The objective is to enhance ease of compliance for taxpayers, deductors and collectors while improving efficiency within the system.

What Is Form No. 143

Form No. 143 is a quarterly statement filed by persons responsible for collecting tax at source. It covers transactions where tax is collected at the time of receipt of payment or at the time of debiting the account of the buyer.

As shown on page 1 of the form, it is a statement under section 397(3)(b) for a specific quarter ending in June, September, December, or March.

The form captures details of tax collected, tax deposited, and collectee-wise information. It ensures that tax collected reaches the credit of the Central Government and reflects correctly in the account of the taxpayer.

Who Must File Form No. 143

Every collector responsible for collecting tax at source on specified transactions must file this form.

These transactions include sale of goods and services such as:

• Scrap
• Tendu leaves
• Timber and forest produce
• Minerals such as coal and iron ore
• Sale of motor vehicles above threshold
• Luxury goods such as watches, art pieces, and collectibles
• Foreign remittances under the Liberalised Remittance Scheme
• Overseas tour packages
• Toll plaza and parking usage for business

The detailed list of transactions and corresponding section codes is provided in the form itself.

Structure of Form No. 143

Form No. 143 is divided into clear sections for systematic reporting.

Part A: Particulars of the Collector

This section captures identity details of the collector. It includes:

• Type of collector such as government or non-government
• Name and address
• PAN and TAN
• Email and contact details
• Tax year
• Details of earlier filing for the same quarter

It also captures details of the person responsible for collecting tax.

Part B: Details of Tax Collected and Deposited

This section records financial details of tax collection.

It includes:

• Total tax collected
• Interest, fee, and penalty
• Total amount deposited
• Mode of payment
• Challan details such as BSR code and serial number
• Date of deposit

These details must match the records available on the system.

Annexure: Collectee-Wise Breakup

The annexure provides detailed reporting for each collectee.

As shown on page 3, the form requires:

• PAN and name of collectee
• Status such as resident or non-resident
• Amount received or debited
• Date of transaction
• Rate of tax collection
• Total tax collected
• Reason for lower or higher collection
• Certificate details for lower collection

It also includes reporting on whether TDS applies to the same transaction and whether it has been deducted.

Key Changes from Earlier Form 27EQ

The earlier Form 27EQ required repeated entry of the same information. This created duplication and increased compliance burden.

The new Form No. 143 addresses this issue by introducing a smart and structured format. It uses:

• Auto-populated fields
• Pre-filled data from the system
• Standardized fields for names and addresses
• Drop-down selections for better accuracy

These changes reduce errors and improve ease of filing.

Standardisation of Due Dates

One major change relates to due dates.

Earlier, different due dates existed for TDS and TCS forms. This created confusion among deductors and collectors.

The new framework standardises due dates for both TDS and TCS returns:

• 31 July for Quarter 1
• 31 October for Quarter 2
• 31 January for Quarter 3
• 31 May for Quarter 4

This uniform structure makes compliance easier.

No Change in Document Requirements

There are no new document requirements for filing Form No. 143.

Collectors must continue to provide:

• Challan details for tax deposited
• PAN details of collectees

This ensures continuity and avoids additional burden.

Electronic Filing and Corrections

Form No. 143 must be filed electronically in the prescribed format.

Once submitted, the form cannot be edited. If any mistake is identified, the collector must file a correction statement after the original statement is processed.

The time limit for filing correction statements has been revised. Corrections can be filed within two years from the end of the tax year in which the statement was due.

Importance of Timely and Accurate Filing

Timely and accurate filing of TCS statements is essential.

It ensures that:

• Correct tax credit is given to collectees
• Disputes and grievances are reduced
• Collectors avoid penalties and legal consequences

Failure to comply will result in late fees and other actions under the law.

Benefits of the New Form

The new Form No. 143 provides several benefits.

It reduces duplication of data and simplifies reporting fields. It improves clarity through structured sections and standardized entries.

Auto-population and validation features reduce errors and improve accuracy. This leads to faster processing and fewer mismatches.

The standardisation of due dates reduces confusion and helps collectors track compliance timelines.

The form creates a more efficient and transparent system.

Conclusion

Form No. 143 represents a significant step in reforming TCS compliance under the Income Tax Rules, 2026. It replaces the earlier Form 27EQ with a modern and structured format. The new form improves accuracy, reduces compliance burden, and strengthens the tax reporting framework.

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