{"id":1,"date":"2025-07-27T12:00:00","date_gmt":"2025-07-27T06:30:00","guid":{"rendered":"https:\/\/romainstitute.com\/?p=1"},"modified":"2025-07-27T05:34:18","modified_gmt":"2025-07-27T11:04:18","slug":"forms-24q-26q-27q-27eq-27d","status":"publish","type":"post","link":"https:\/\/www.romainstitute.com\/blogs\/forms-24q-26q-27q-27eq-27d\/","title":{"rendered":"Know the Income Tax Forms 24Q, 26Q, 27Q, 27EQ, and 27D?"},"content":{"rendered":"\n

Basic Introduction<\/h2>\n\n\n\n
Form<\/th>Covers<\/th>Who files \/ issues<\/th>Resident \/ Non-resident<\/th>Quarterly due date*<\/th>Certificate to deductee \/ collectee<\/th><\/tr><\/thead>
24Q<\/strong><\/td>TDS on salary<\/strong> (Sec. 192)<\/td>Any employer deducting TDS on salaries<\/td>Residents<\/td>31 Jul \/ 31 Oct \/ 31 Jan \/ 31 May<\/td>Form 16 (by 15 June following FY)<\/td><\/tr>
26Q<\/strong><\/td>TDS on non-salary payments to residents<\/strong> (e.g., 194C, 194J, 194H, 194I, etc.)<\/td>Any deductor paying specified sums to residents<\/td>Residents<\/td>31 Jul \/ 31 Oct \/ 31 Jan \/ 31 May<\/td>Form 16A (within 15 days of the due date of the statement)<\/td><\/tr>
27Q<\/strong><\/td>TDS on payments to non-residents<\/strong> (Sec. 195 and others)<\/td>Any person making taxable payments to non-residents\/foreign companies<\/td>Non-residents<\/td>31 Jul \/ 31 Oct \/ 31 Jan \/ 31 May<\/td>Form 16A (same timeline as 26Q)<\/td><\/tr>
27EQ<\/strong><\/td>TCS<\/strong> \u2013 tax collected<\/em> at source (Sec. 206C)<\/td>Sellers\/collectors liable under 206C<\/td>Residents & non-residents (as collectees)<\/td>15<\/strong> Jul \/ 15<\/strong> Oct \/ 15<\/strong> Jan \/ 15<\/strong> May<\/td>Form 27D<\/strong><\/td><\/tr>
27D<\/strong><\/td>TCS certificate<\/strong> issued to buyers\/collectees<\/td>Collector (after filing 27EQ)<\/td>\u2014<\/td>\u2014<\/td>Within 15 days<\/strong> from the due date of filing the corresponding 27EQ<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

*The \u201cquarterly due date\u201d is for the statement pertaining to Q1 (Apr\u2013Jun), Q2 (Jul\u2013Sep), Q3 (Oct\u2013Dec) and Q4 (Jan\u2013Mar) respectively. Deposit due dates for TDS\/TCS are earlier \u2014 typically the 7th of the following month (and 30 April for TDS deducted in March). Always verify current year timelines before filing, as the CBDT may notify changes.<\/em><\/p>\n\n\n\n

\n\n\n\n

Form 24Q \u2014 TDS on salaries<\/h2>\n\n\n\n

What it is:<\/strong> <\/p>\n\n\n\n

The quarterly TDS return that employers submit, detailing tax deductions from employee salaries as per Section 192 of the Income Tax Act.<\/p>\n\n\n\n

Who must file?<\/h3>\n\n\n\n
    \n
  • Every employer who pays salary and deducts TDS (individuals, firms, LLPs, companies, government offices, etc.).<\/li>\n<\/ul>\n\n\n\n

    How it is structured<\/h3>\n\n\n\n
      \n
    • Main statement<\/strong> \u2013 deductor details & challan info.<\/li>\n\n\n\n
    • Annexure I<\/strong> \u2013 deductee-wise details (filed every quarter).<\/li>\n\n\n\n
    • Annexure II\/III<\/strong> \u2013 full year salary breakup, tax regime selection, perquisites, etc. (filed only in Q4<\/strong>).<\/li>\n<\/ul>\n\n\n\n

      Key compliance points<\/h3>\n\n\n\n
        \n
      • Use correct PAN for every employee; invalid PAN leads to mismatch with Form 26AS and downstream notices.<\/li>\n\n\n\n
      • Ensure the chosen tax regime (old\/new) is correctly captured for each employee.<\/li>\n\n\n\n
      • Match challans (CIN) accurately; incorrect mapping is a top reason for short payment demands.<\/li>\n<\/ul>\n\n\n\n

        Certificates issued<\/h3>\n\n\n\n

        Employers are required to issue Form 16 to every employee by June 15 after the end of the financial year.<\/p>\n\n\n\n

        \n\n\n\n

        Form 26Q \u2014 TDS on non-salary payments to residents<\/h2>\n\n\n\n

        What it is:<\/strong> The quarterly return for most payments (other than salary) made to resident<\/strong> payees, such as contractor payments (194C), professional fees (194J), rent (194I), commission (194H), interest (194A), etc.<\/p>\n\n\n\n

        Who must file?<\/h3>\n\n\n\n
          \n
        • Any person (including individuals and HUFs if liable under Section 194M \/ 194H \/ 194I, etc.) who deducts TDS on resident payments.<\/li>\n<\/ul>\n\n\n\n

          Common traps<\/h3>\n\n\n\n
            \n
          • Wrong section code<\/strong> (e.g., tagging a professional as contractor) \u2192 wrong rate and interest\/fee demands.<\/li>\n\n\n\n
          • PAN errors<\/strong> \u2192 20% default deduction, mismatch in 26AS, and correction statement hassles.<\/li>\n\n\n\n
          • Threshold confusion<\/strong> \u2013 some apply per payment, others on aggregate; always read the section carefully.<\/li>\n\n\n\n
          • Including GST in base for TDS<\/strong> where it should be excluded (CBDT clarifications exist) \u2192 unnecessary excess deduction and reconciliation issues.<\/li>\n<\/ul>\n\n\n\n

            Certificates issued<\/h3>\n\n\n\n

            Form 16A must be issued within 15 days after the due date for submitting the quarterly TDS return.<\/p>\n\n\n\n

            \n\n\n\n

            Form 27Q \u2014 TDS on payments to non-residents<\/h2>\n\n\n\n

            What it is:<\/strong> The quarterly TDS return for payments to non-residents\/foreign companies<\/strong> (e.g., royalty, FTS, interest, dividends, capital gains, etc.). Generally, there is no threshold<\/strong> \u2013 almost every taxable payment needs evaluation for TDS.<\/p>\n\n\n\n

            What makes 27Q different?<\/h3>\n\n\n\n
              \n
            • DTAA application<\/strong> \u2013 Lower rates may apply if tax treaty conditions (TRC, Form 10F, etc.) are satisfied.<\/li>\n\n\n\n
            • Form 15CA\/15CB<\/strong> \u2013 Often required for remittances (especially above \u20b95 lakh) under RBI rules.<\/li>\n\n\n\n
            • FX conversion<\/strong> \u2013 TDS has to be computed in INR; use authorised reference rates for consistency.<\/li>\n<\/ul>\n\n\n\n

              Certificates issued<\/h3>\n\n\n\n

              As with Form 26Q, Form 16A must be issued within 15 days of the due date for filing the return for the relevant quarter.<\/p>\n\n\n\n

              \n\n\n\n

              Form 27EQ \u2014 TCS statement<\/h2>\n\n\n\n

              What it is:<\/strong> The quarterly statement of Tax Collected at Source (TCS)<\/strong> under Section 206C<\/strong>.<\/p>\n\n\n\n

              Who must file?<\/h3>\n\n\n\n
                \n
              • Sellers\/collectors liable to collect tax on specified goods\/transactions (e.g., liquor, timber, minerals, certain motor vehicles, LRS remittances, etc.).<\/li>\n<\/ul>\n\n\n\n

                How it is different from TDS forms<\/h3>\n\n\n\n
                  \n
                • Tax is collected by the seller<\/strong>, not deducted by the payer.<\/li>\n\n\n\n
                • Earlier due dates:<\/strong> 27EQ is due on the 15th<\/strong> of the month following the quarter (vs. 31st for TDS statements).<\/li>\n\n\n\n
                • Buyers receive Form 27D<\/strong>, not Form 16\/16A.<\/li>\n<\/ul>\n\n\n\n

                  Penalties & interest<\/h3>\n\n\n\n
                    \n
                  • Late filing fee (234E):<\/strong> \u20b9200 per day, capped at the TCS amount.<\/li>\n\n\n\n
                  • Penalty (271H):<\/strong> \u20b910,000 to \u20b91,00,000 for failure\/incorrect filing (subject to waiver if conditions are met).<\/li>\n\n\n\n
                  • Interest:<\/strong> 1% per month for late collection\/deposit.<\/li>\n<\/ul>\n\n\n\n
                    \n\n\n\n

                    Form 27D \u2014 The TCS certificate (not a return!)<\/h2>\n\n\n\n

                    Form 27D is a TCS certificate<\/strong> issued to the buyer\/collectee to confirm how much tax has been collected from them and deposited with the government. It is downloaded from TRACES<\/strong> after the collector files Form 27EQ<\/strong>.<\/p>\n\n\n\n

                    Issuance timeline<\/h3>\n\n\n\n

                    Must be issued within 15 days<\/strong> from the due date<\/strong> of filing the corresponding 27EQ.<\/p>\n\n\n\n

                    What it contains<\/h3>\n\n\n\n
                      \n
                    • Collector and collectee particulars<\/li>\n\n\n\n
                    • Section code and nature of goods\/transaction<\/li>\n\n\n\n
                    • Amount collected, deposit challan details, and the acknowledgement number of the filed 27EQ<\/li>\n<\/ul>\n\n\n\n
                      \n\n\n\n

                      Standard quarterly due dates (statements)<\/h2>\n\n\n\n
                        \n
                      • Q1 (Apr\u2013Jun):<\/strong> 31 July (TDS) | 15 July (TCS)<\/li>\n\n\n\n
                      • Q2 (Jul\u2013Sep):<\/strong> 31 October (TDS) | 15 October (TCS)<\/li>\n\n\n\n
                      • Q3 (Oct\u2013Dec):<\/strong> 31 January (TDS) | 15 January (TCS)<\/li>\n\n\n\n
                      • Q4 (Jan\u2013Mar):<\/strong> 31 May (TDS) | 15 May (TCS)<\/li>\n<\/ul>\n\n\n\n

                        Pro tip:<\/em> TDS\/TCS deposits<\/strong> are generally due by the 7th of the following month<\/strong> (and by 30 April<\/strong> for TDS deducted in March). Always check the applicable year\u2019s CBDT notifications for any changes.<\/p>\n\n\n\n

                        \n\n\n\n

                        Late fees, penalties & interest<\/h2>\n\n\n\n
                          \n
                        • Late filing fee (Section 234E):<\/strong> \u20b9200 per day from due date till filing, capped at the TDS\/TCS amount<\/strong>.<\/li>\n\n\n\n
                        • Penalty (Section 271H):<\/strong> \u20b910,000 to \u20b91,00,000 for non-filing\/incorrect filing. Can be waived if:\n
                            \n
                          • TDS\/TCS is paid to the government,<\/li>\n\n\n\n
                          • Late fee & interest are paid, and<\/li>\n\n\n\n
                          • The return is filed within one year from the due date.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                          • Interest for non-deduction \/ short deduction:<\/strong> 1% per month (or part) from the date tax was deductible to the date it\u2019s actually deducted.<\/li>\n\n\n\n
                          • Interest for late deposit:<\/strong> 1.5% per month (or part) from the date of deduction to the date of payment.<\/li>\n\n\n\n
                          • Prosecution (Section 276B):<\/strong> For willful failure to pay TDS to the credit of the Central Government (3 months to 7 years + fine). Relief provisions may apply if dues are settled before filing of return.<\/li>\n\n\n\n
                          • Expense disallowance (Section 40(a)(ia) \/ 40(a)(i)):<\/strong> 30% (domestic) \/ 100% (non-resident) of the expense can be disallowed if TDS is not deducted\/deposited; allowed as deduction in the year of actual payment.<\/li>\n<\/ul>\n\n\n\n
                            \n\n\n\n

                            Common errors that trigger notices<\/h2>\n\n\n\n
                              \n
                            • Wrong section code<\/strong> in 26Q & 27Q (e.g., 194C vs 194J) \u2192 wrong rate, interest & correction statements.<\/li>\n\n\n\n
                            • PAN errors<\/strong> leading to default 20% rate and mismatch in 26AS\/AIS.<\/li>\n\n\n\n
                            • Challan mapping mistakes<\/strong> (CIN mismatch) \u2192 short payment demands.<\/li>\n\n\n\n
                            • Missing Annexure II in 24Q Q4<\/strong> \u2192 salary reconciliation failures and demands.<\/li>\n\n\n\n
                            • Not excluding GST<\/strong> when section or CBDT clarification demands exclusion.<\/li>\n\n\n\n
                            • Delays in issuing certificates<\/strong> (Form 16\/16A\/27D) \u2192 stakeholder friction & follow-up workload.<\/li>\n<\/ul>\n\n\n\n
                              \n\n\n\n

                              Best practices you should institutionalise<\/h2>\n\n\n\n
                                \n
                              1. Automate PAN validation<\/strong> and section picking logic<\/strong> in your ERP\/accounting system.<\/li>\n\n\n\n
                              2. Implement a maker\u2013checker<\/strong> workflow: data entry \u2192 review \u2192 sign-off.<\/li>\n\n\n\n
                              3. Reconcile 26AS\/AIS\/TRACES<\/strong> every month; don\u2019t wait till quarter-end.<\/li>\n\n\n\n
                              4. Maintain a live compliance calendar<\/strong> (returns, deposits, certificates) with alerts.<\/li>\n\n\n\n
                              5. Use the latest RPU\/FVU<\/strong> versions and read release notes \u2014 validation rules change.<\/li>\n\n\n\n
                              6. Keep digital document trails<\/strong> for eight years: challans, acknowledgements, certificates, workings, emails.<\/li>\n\n\n\n
                              7. Train your team annually<\/strong> on new sections, thresholds, and CBDT circulars.<\/li>\n<\/ol>\n\n\n\n
                                \n\n\n\n

                                FAQs<\/h2>\n\n\n\n

                                1) Is Form 27D a quarterly return?<\/strong><\/p>\n\n\n\n

                                It is a TCS certificate provided to the buyer once Form 27EQ has been filed.<\/p>\n\n\n\n

                                2) Is Form 24Q filed every quarter with detailed information on employee salaries?<\/strong>
                                Annexure I is filed every quarter. Detailed salary breakup (Annexure II\/III) is filed only in Q4.<\/strong><\/p>\n\n\n\n

                                3) If I pay a non-resident once in a year, do I still need to file 27Q?<\/strong>
                                Yes, if the payment is chargeable to tax in India and TDS is deductible. There\u2019s generally no threshold exemption.<\/p>\n\n\n\n

                                4) When must Form 16A be given?<\/strong>
                                Within 15 days<\/strong> from the due date of the corresponding quarterly TDS statement (26Q\/27Q).<\/p>\n\n\n\n

                                5) What are the consequences of missing the quarterly filing deadline?<\/strong>
                                You pay a late filing fee of \u20b9200\/day (234E)<\/strong> capped at the TDS\/TCS amount, and may face a penalty under 271H<\/strong> unless you meet waiver conditions.<\/p>\n\n\n\n

                                \n\n\n\n

                                Wrap-up<\/h2>\n\n\n\n

                                Think of the five forms this way:<\/p>\n\n\n\n

                                  \n
                                • 24Q<\/strong> \u2013 TDS you took from employees<\/em>.<\/li>\n\n\n\n
                                • 26Q<\/strong> \u2013 TDS you took from resident vendors\/payees<\/em>.<\/li>\n\n\n\n
                                • 27Q<\/strong> \u2013 TDS you took from non-resident payees<\/em>.<\/li>\n\n\n\n
                                • 27EQ<\/strong> \u2013 TCS you collected<\/em> from buyers.<\/li>\n\n\n\n
                                • 27D<\/strong> \u2013 The certificate<\/em> you give those buyers to prove that TCS was collected and paid.<\/li>\n<\/ul>\n\n\n\n

                                  Master the purpose, the due dates, and the certificate logic \u2014 and 90% of your TDS\/TCS compliance headaches disappear.<\/strong> The remaining 10% is process discipline: correct sections, clean PANs, accurate challan mapping, and on-time filing.<\/p>\n\n\n\n

                                  Disclaimer:<\/em> Law and rates change. Always check the latest Finance Act, CBDT circulars\/notifications, and TRACES\/e-filing portal updates before you file.<\/p>\n","protected":false},"excerpt":{"rendered":"

                                  Know everything about forms 24Q, 26Q, 27Q, 27EQ and 27D including Late fees and penalties, common errors etc.<\/p>\n","protected":false},"author":1,"featured_media":1265,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[71],"tags":[65,66,69,68,67,72],"class_list":["post-1","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax-and-filing","tag-form-24q","tag-form-26q","tag-form-27d","tag-form-27eq","tag-form-27q","tag-income-tax"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/posts\/1"}],"collection":[{"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/comments?post=1"}],"version-history":[{"count":25,"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/posts\/1\/revisions"}],"predecessor-version":[{"id":1298,"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/posts\/1\/revisions\/1298"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/media\/1265"}],"wp:attachment":[{"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/media?parent=1"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/categories?post=1"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.romainstitute.com\/blogs\/wp-json\/wp\/v2\/tags?post=1"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}