The Income Tax Act, 2025 has revised the TCS compliance framework for Tax Year (TY) 2026-27. Two changes matter most: quarterly TCS returns must now be filed in the new Form 143 (replacing Form 27EQ), and the filing deadlines have been extended to the last day of the month following each quarter — instead of the 15th. The first deadline under the new regime is 31 July 2026, for the quarter April–June 2026. Importantly, the monthly TCS deposit deadline (7th of the following month) has not changed.
Here is the complete guide: the new quarterly due dates, what Form 143 is, deposit timelines for government and non-government collectors, late fees and interest, and the practical steps businesses should take now.
What has changed for TCS returns in TY 2026-27?
Under the Income Tax Act, 2025, the TCS reporting framework has been redesigned with two objectives — simplifying compliance and aligning TCS timelines with TDS filing requirements. The key changes:
- New form: Quarterly TCS statements must be furnished in Form 143, replacing the earlier Form 27EQ.
- Extended due dates: Returns are now due on the last day of the month following the quarter, instead of the 15th.
- Unchanged deposit timeline: TCS collected in a month must still be deposited by the 7th of the next month (for non-government collectors).
What is Form 143?
Starting from TY 2026-27, every person responsible for collecting tax at source must furnish quarterly TCS statements in Form 143. It forms part of the compliance structure under the Income Tax Act, 2025 and replaces Form 27EQ. The revised format is designed for smoother reporting, better data validation, and quicker reflection of tax credits in taxpayer records.
Note: Returns for periods before TY 2026-27 continue to be governed by the earlier provisions — Form 27EQ still applies to those quarters.
TCS return due dates for TY 2026-27 (Form 143)
| Quarter | Period | Due date for filing Form 143 |
|---|---|---|
| Q1 | 1 April 2026 – 30 June 2026 | 31 July 2026 |
| Q2 | 1 July 2026 – 30 September 2026 | 31 October 2026 |
| Q3 | 1 October 2026 – 31 December 2026 | 31 January 2027 |
| Q4 | 1 January 2027 – 31 March 2027 | 31 May 2027 |
The extended schedule gives collectors additional time to reconcile collection records, verify PANs, and match challan deposits before filing — reducing correction statements later.
Has the TCS deposit due date changed?
No. Only the return filing deadlines have been relaxed — the deadlines for depositing TCS with the Central Government remain unchanged.
Non-government collectors
TCS collected during a month must generally be deposited on or before the 7th day of the following month. Example: TCS collected in August 2026 must be deposited by 7 September 2026.
Government collectors
Where tax is credited through book adjustment, remittance continues to follow the applicable government accounting procedures.
What are the consequences of late filing of Form 143?
- Late filing fee: ₹200 per day for each day of delay, capped at the TCS collectable for the relevant quarter.
- Interest on delayed deposit: Where TCS is collected but not deposited on time, interest is payable for the period of default — even if the return itself is filed on time.
- Additional penalty: Continued non-compliance can attract further penalties under the Income Tax Act, 2025.
The biggest compliance risk under the new framework
The extended return deadlines create a false sense of relaxation. Many businesses will focus on the new quarterly dates and overlook the unchanged monthly deposit deadline. In practice, delayed deposit of TCS creates far greater compliance exposure than delayed filing — it attracts interest for the entire default period and delays credit reflection for the buyer/collectee. Treat the 7th-of-the-month deposit as the real deadline; the quarterly return is just the reporting layer.
Practical compliance checklist for businesses
- Update tax software and ERP systems to generate and validate Form 143.
- Verify PAN and taxpayer information before filing each quarterly return.
- Reconcile TCS collections with challan payments periodically — monthly, not quarterly.
- Maintain supporting records for future verification and correction statements.
- Run TDS and TCS reconciliations together — the aligned calendars now make combined workflows practical and reduce reporting discrepancies.
Key takeaways
- Form 143 replaces Form 27EQ for quarterly TCS returns from TY 2026-27.
- Return due dates move to the month-end following each quarter: 31 July, 31 October, 31 January, 31 May.
- Deposit deadlines are unchanged — 7th of the following month for non-government collectors.
- Late filing costs ₹200/day (capped at the quarter's TCS), and delayed deposit attracts interest.
- TDS and TCS calendars are now aligned — build a single quarterly compliance workflow.
FAQs on TCS return due dates for TY 2026-27
Why has the TCS return filing deadline been extended?
The extension gives collectors extra time to reconcile collection records, verify taxpayer details, and match tax deposits before filing — reducing reporting errors and the volume of correction filings.
Does the extension of the return due date also extend the TCS payment due date?
No. The relaxation applies only to filing the quarterly return. Tax collected in a month must still be deposited within the monthly timeline, and delayed payment attracts interest even if the return is filed on time.
Is Form 143 completely replacing Form 27EQ?
Yes, for TY 2026-27 onwards. Quarterly TCS statements must be furnished in Form 143. Returns for earlier periods remain governed by the provisions applicable to those years.
What is the due date for the first TCS return under the new law?
31 July 2026 — for the first quarter of TY 2026-27 (1 April 2026 to 30 June 2026).
What is the maximum late filing fee for Form 143?
₹200 per day of delay, but the total fee cannot exceed the amount of TCS collectable for the relevant quarter.
How does the change benefit tax professionals?
With TDS and TCS returns now following a similar reporting calendar, practitioners can run reconciliations, validations and return preparation in a single structured quarterly cycle — improving efficiency and cutting last-minute pressure.
Need help transitioning to Form 143 or managing quarterly TCS/TDS compliance? efiletax can handle it end-to-end. Call 9696 160160 or visit efiletax.in.