Form 27EQ is a quarterly statement for filing Tax Collected at Source (TCS) in India, required by sellers collecting tax under Section 206C. File online via the Income Tax Department's e-filing portal using Return Preparation Utility (RPU) to create a .txt file, validated by File Validation Utility (FVU). Ensure you have your TAN, PAN, and challan details ready.
ExpressTDS || Process to Prepare and File 27EQ TDS Return
Form 27EQ is a quarterly statement that mentions details and information regarding tax collected at the source (TCS) at the end of every quarter as per Section 206C of the Income Tax Act 1961. TCS is the Tax collected by the seller. In this form, it is mandatory to furnish TAN.
Know how to file TDS or TCS returns online in three simple steps:
Penalties for Late Filing of Form 27EQ
Late Filing Fee: A penalty of ₹200 per day is levied until the return is successfully filed. Penalty under Section 271H: If Form 27EQ is filed incorrectly or after the due date, the penalty can range from ₹10,000 to ₹1,00,000.
How do S corp owners pay themselves? Those who are both an employee and a shareholder in an S corporation generally pay themselves via distributions and a salary. The latter is necessary if the individual performs more than minor services for the business.
ITR Filing Charges:
Salaried ITR Filing: ₹1,000/- Capital Gain / Share Gain-Loss ITR: ₹1,500/- Business ITR – 44AD Return: ₹2,000/- All other ITR Filing: ₹3,000/-
Yes. TCS needs to be collected on value of sale consideration, which usually includes GST. If the person fails to file the TCS return on or before the due date prescribed in the income tax law, a late filing fee of Rs. 200 per day must be paid, during which the failure continues.
Understanding TDS Refund on Salary
A TDS refund is applicable when the tax deducted at source (TDS) by your employer exceeds your actual tax liability for the financial year. For example, if your total tax payable is ₹20,000 but your employer deducts ₹25,000, you are eligible for a TDS refund of ₹5,000.
If your income is above the taxable annual limit and the TCS paid is more than the total tax payable, TCS will be refunded to the assessee's bank account. If your income is above the taxable annual limit and the TCS paid is less than the total tax payable, the TCS paid will be adjusted to the total tax liability.
Sometimes, the total TDS deducted during the financial year may exceed the taxpayer's actual tax liability. In such cases, the excess tax paid can be claimed as a TDS refund by filing an Income Tax Return (ITR). TDS Refund arises when total TDS deducted is more than actual tax liability.
On Income Tax Return Page:
Form 24Q is used for salary TDS, Form 26Q for non-salary payments, Form 27Q for payments to non-residents, and Form 27EQ for TCS filings. Each form ensures correct reporting and compliance.
As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circumstances, voluntary filing can be beneficial in many ways.
5 Legal & Smart Ways to Avoid Paying 20% TCS on Foreign Remittances in 2025
Relevant document proof, as applicable, will be checked for gaps in education. Only Full time courses will be considered (Part Time/Correspondence courses will not be considered). Candidates with work experience of more than 3 years are not eligible to participate in the TCS Selection process.
TCS applies to sellers whose turnover exceeded Rs. 10 crore in the preceding financial year. The goods subject to TCS include alcoholic liquor for human consumption, tendu leaves, timber from forest leases, scrap, minerals (such as coal, lignite, and iron ore), and other forest produce.
Richest Chartered Accountants in India. 1. Kumar Mangalam Birla (Net Worth: $19 billion) 2.
The average cost of tax preparation by a Certified Public Accountant (CPA) in the U.S. typically ranges from $200–$500 for individual returns and $1,000–$5,000 for small business or corporate returns. Costs depend on the complexity of your taxes, the number of forms required, and your location.
MyITReturn
The portal offers free e-filing facility to salaried employees with income less than Rs. 2.50 lakh. Taxpayers with higher income have paid plans for them, starting from Rs. 199 plus taxes.
The most tax-efficient way for many active LLC owners is to elect S-corporation status, paying yourself a "reasonable" W-2 salary subject to payroll taxes, with remaining profits taken as distributions (dividends) not subject to self-employment tax, saving ~15% on the distribution portion. For single-member LLCs or those with lower profits, owner's draws (flexible withdrawals) are simpler but all profits are subject to self-employment tax, while a salary-only approach (default LLC/sole prop) also taxes all net income at full self-employment rates. Always consult a tax professional, as the best method depends on your specific income and business structure.
The "2% rule" for S Corporations treats shareholders owning more than 2% of the company's stock (or voting power) differently for fringe benefits, classifying them like partners in a partnership, not regular employees; this means benefits like health insurance premiums paid by the S Corp must be included as taxable wages on their W-2, rather than being tax-free, though the shareholder can often deduct these premiums as an "above-the-line" deduction. This rule prevents them from participating in tax-advantaged Section 125 cafeteria plans, making benefits like Health FSAs unavailable on a pre-tax basis.