Form No. 143 (TCS Return) – Practical Guide for 2026

Introduction

Form No. 143 is the newly prescribed quarterly return for reporting Tax Collected at Source (TCS) under the updated tax framework introduced by the Income-tax Act, 2025 and Income-tax Rules, 2026. It replaces the earlier Form 27EQ and is applicable from 1 April 2026.

This change marks a shift in reporting structure rather than tax liability, making it essential for businesses and professionals to understand its practical implications.

Legal Applicability

The new provisions are fully in force:

Income-tax Act, 2025: Effective from 1 April 2026
Income-tax Rules, 2026: Notified and applicable
Form No. 143: Officially prescribed

This is a confirmed compliance requirement and not a proposed change.

Which Form to Use: Key Rule

The applicable form depends on the transaction period, not the filing date:

For example, TCS collected for January–March 2026 must still be reported in Form 27EQ, even if filed after April 2026.

Who is Required to File

Form No. 143 must be filed by all TCS collectors, including:

Companies and businesses
Partnership firms and LLPs
Government and non-government entities
Any person liable to collect TCS under specified provisions

Transactions Covered

The scope of TCS remains unchanged. It continues to apply to transactions such as:

Sale of scrap
Tendu leaves and forest produce
Alcoholic liquor
Parking lots, toll plazas, and mining rights
Overseas remittances under LRS
Foreign tour packages
Sale of specified goods

Structure of Form No. 143

The form is divided into three main sections:

Part A – Collector Details

PAN and TAN
Name and address
Responsible person details

Part B – TCS Summary

Total tax collected
Tax deposited
Interest and late fees
Challan details

Annexure – Collectee-wise Details

PAN of buyer
Nature of transaction
Amount and rate
TCS collected
Lower/nil certificate details (if applicable)

Key Improvements

Form No. 143 introduces structural enhancements:

Simplified reporting format
Single consolidated tax collection field
Improved data standardization
Better validation mechanisms

However, actual ease of compliance will depend on the functionality of the Income Tax portal and software tools.

Filing and Processing

Filing is done electronically via the Income Tax portal
Processing is handled by CPC-TDS
Errors must be corrected through revised returns
TCS certificates are generated post-processing

Important Compliance Points

Ensure accurate PAN details of collectees
Correct classification of transaction type
Timely deposit of TCS before filing
Avoid late filing to prevent fees and penalties

Practical Impact

For Businesses

Update accounting and return filing software
Capture transaction data correctly from April 2026
Align internal processes with new reporting format

For Professionals

Manage transition carefully between old and new forms
Avoid incorrect form usage
Review mapping of sections and reporting codes

Conclusion

Form No. 143 is a significant compliance update under the new tax regime effective from 1 April 2026. While it does not alter the tax liability, it introduces a revised reporting framework that must be followed accurately.

The transition remains straightforward if one core rule is followed:

Old transactions: File using Form 27EQ
New transactions: File using Form No. 143

Proper understanding and timely adaptation will ensure smooth compliance under the new system.