The Income-tax Act, 2025, effective for Tax Year (TY) 2026-27, has introduced important changes to India’s Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) compliance framework. One of the most significant updates for businesses is the revision of TCS Return Filing Due Dates and the introduction of Form 143, which replaces the earlier Form 27EQ for quarterly TCS reporting.

Many businesses have misunderstood these changes, assuming that the extension in return filing deadlines also extends the due date for depositing TCS. However, this is not the case. Monthly TCS deposits must still be made within the prescribed time limits.

In this comprehensive guide by Vinay Vihaan & Associates, we explain the latest TCS Return Filing Due Dates, the transition to Form 143, important compliance requirements, penalties for non-compliance, and practical tips to help your business stay compliant.

What is Tax Collected at Source (TCS)?

Tax Collected at Source (TCS) is a mechanism under the Income-tax law where specified sellers collect tax from buyers at the time of sale of notified goods or specified transactions and deposit it with the Government.

TCS commonly applies to:

• Sale of scrap
• Sale of minerals
• Timber and forest produce
• Motor vehicles above the prescribed value
• Overseas tour packages
• Foreign remittances under Liberalised Remittance Scheme (LRS)
• Sale of specified goods where applicable
• Other notified transactions

After collecting TCS, the collector must:

• Deposit the tax within the prescribed due date.
• File quarterly TCS returns.
• Maintain proper records.
• Ensure accurate reporting to enable tax credit for buyers.

Major Changes Introduced Under the Income-tax Act, 2025

The Income-tax Act, 2025 is a structural reform intended to simplify tax administration and modernize compliance. While many TCS obligations continue, businesses must adapt to new forms, updated section references, and revised reporting requirements from 1 April 2026 onwards.

The major TCS-related changes include:

• New quarterly return form.
• Revised form numbering.
• Updated compliance framework.
• Revised quarterly filing due dates.
• New reporting structure under the Income-tax Rules, 2026.

Form 143 Replaces Form 27EQ

One of the biggest compliance updates is the replacement of Form 27EQ.

For Tax Year 2026-27 onwards, quarterly TCS statements are required to be filed using Form 143 under the Income-tax Rules, 2026. Form 143 serves the same core purpose as Form 27EQ—reporting Tax Collected at Source—but under the new legislative framework introduced by the Income-tax Act, 2025.

Businesses should ensure that:

• Their accounting software supports Form 143.
• ERP systems are updated.
• Compliance teams understand the new form requirements.

Latest TCS Return Filing Due Dates for TY 2026-27

The revised TCS Return Filing Due Dates applicable under the new law are:

These dates apply to quarterly filing of Form 143 for Tax Year 2026-27.

Monthly TCS Deposit Due Dates Have Not Changed

One of the most important compliance points is that only the return filing timeline has changed.

The deadline for depositing TCS collected during a month continues to be the 7th day of the following month (subject to applicable statutory provisions).

For example:

Therefore, businesses must not confuse quarterly return filing with monthly tax payment.

Why This Distinction Matters

Many taxpayers mistakenly assume:

“If the quarterly return deadline has been extended, I can also delay depositing TCS.”

This assumption is incorrect.

Remember the difference:

Monthly Compliance

• Collect TCS.
• Deposit it by the prescribed monthly due date.

Quarterly Compliance

• File Form 143 before the quarterly due date.

Both compliances are independent of each other.

Consequences of Delayed TCS Deposit

Failure to deposit TCS within the prescribed due date may result in:

• Interest liability under the Income-tax Act.
• Delayed credit to buyers.
• Compliance notices.
• Additional financial burden due to statutory interest.

Businesses should therefore reconcile collections every month and deposit TCS promptly.

Consequences of Late Filing of Form 143

Failure to file quarterly TCS returns within the due date may lead to:

• Late filing fee under the applicable provisions.
• Delay in reflecting TCS credit to taxpayers.
• Possible notices from the Income Tax Department.
• Additional penalties in specified cases of prolonged non-compliance.

Timely filing ensures smooth compliance and reduces the risk of future disputes.

How Businesses Should Prepare

To ensure smooth compliance under the new law:

1. Update Accounting Software

Verify that your ERP or accounting software supports Form 143.

2. Train Finance Teams

Finance and tax teams should familiarize themselves with the revised compliance process.

3. Monthly Reconciliation

Reconcile TCS collections every month instead of waiting until the quarter ends.

4. Maintain Proper Documentation

Keep invoices, challans, and reconciliation statements readily available.

5. Monitor Due Dates

Create an internal compliance calendar to avoid missed deadlines.

Common Mistakes Businesses Should Avoid

Many businesses make avoidable compliance errors such as:

• Assuming return due date equals payment due date.
• Using outdated filing utilities.
• Delaying ERP updates.
• Incorrect PAN reporting.
• Filing returns without reconciliation.
• Missing quarterly deadlines.
• Incorrect TCS amount reporting.

Avoiding these mistakes can save both time and unnecessary penalties.

How Vinay Vihaan & Associates Can Help

At Vinay Vihaan & Associates, we help businesses stay fully compliant with evolving tax laws. Our team of experienced Chartered Accountants provides end-to-end TCS compliance solutions tailored to businesses of all sizes.

Our services include:

• TCS advisory and compliance
• Monthly TCS deposit assistance
• Quarterly Form 143 filing
• Tax reconciliation
• ERP and accounting compliance support
• GST and Income Tax advisory
• Notice handling and representation
• Complete business taxation services

Whether you’re a startup, MSME, trader, or established enterprise, we ensure that your tax compliance remains accurate, timely, and hassle-free.

Frequently Asked Questions (FAQs)

1. What is Form 143?

Form 143 is the new quarterly TCS statement introduced under the Income-tax Rules, 2026. It replaces the earlier Form 27EQ for reporting Tax Collected at Source.

2. Has Form 27EQ been discontinued?

Yes. For Tax Year 2026-27 onward under the Income-tax Act, 2025 framework, Form 143 replaces Form 27EQ.

3. What are the TCS Return Filing Due Dates?

The due dates are:

• Q1 – 31 July 2026
• Q2 – 31 October 2026
• Q3 – 31 January 2027
• Q4 – 31 May 2027

4. Has the monthly TCS deposit due date changed?

No. The monthly deposit timeline remains unchanged. Businesses must continue depositing TCS within the prescribed monthly due dates.

5. Should businesses update their accounting software?

Yes. Businesses should ensure that their ERP and tax software support Form 143 and the revised compliance framework.

Final Thoughts

The revised TCS Return Filing Due Dates under the Income-tax Act, 2025 represent an important compliance update for businesses. Along with the introduction of Form 143, organizations must adapt their internal systems and processes to meet the new reporting requirements.

However, businesses should remember one key point: the extension of quarterly return filing deadlines does not extend the monthly TCS deposit due dates. Timely deposits, accurate reporting, and updated accounting systems remain essential for avoiding interest, late fees, and unnecessary compliance issues.

If your business requires assistance with TCS compliance, Form 143 filing, GST, Income Tax, or overall tax advisory, the experienced team at Vinay Vihaan & Associates is here to help you navigate the latest tax changes with confidence.