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View, Prepare, and Export Form 27EQ in TallyPrime

Form 27EQ is the quarterly TCS return used to report TCS collected during the quarter. Using the Form 27EQ report in TallyPrime, you to review TCS transactions, identify and resolve exceptions and incomplete entries, verify return details, and export the e-TCS return in the prescribed format for submission.

With the introduction of the Income Tax Act, 2025, Form 27EQ is replaced by Form 143 for quarterly TCS returns. In TallyPrime Release 7.1, Form 143 currently provides the same report information and functionality as Form 27EQ. To learn more, refer to the section Form 143 on this page.

View Form 27EQ

1. Press Alt+G (Go To) > type or select Form 27EQ > and press Enter.
   
   The Total Vouchers section displays the transactions for the selected period under:
   
   • Included in return: Displays the vouchers that will form part of the return.
   • Not Relevant in this Return: Displays the vouchers that are excluded from the return.
   • Uncertain Transactions (Corrections needed): Displays the vouchers that are not included in the return because required information is missing or incorrect.

Drill down from the Total Vouchers section to view the Statistics report with the voucher types and their corresponding counts.

Review and Correct Details

You can review the transactions participating in your TCS return, and also correct the details if required.

Resolve Uncertain Transactions (Corrections needed)

1. Drill down from Uncertain Transactions (Corrections needed) to check transactions that are not included in the return because required information is missing or incorrect.
2. Select the exception and press Enter to drill down to the affected master or transaction.
3. Alter the required details and save the changes.

The exceptions can relate to:

Master details

• TCS applicability: TallyPrime cannot determine whether TCS applies because the sales/income ledger or stock item is not configured with the required TCS Nature of Goods.
• Collectee type: The collectee type is not specified for the party ledger.
• PAN details: The PAN or PAN status of the party is not specified.
• Notification details for zero or lower-rate collection: The notification details are missing for a zero- or lower-rate TCS collection.
• TCS applicability for duty ledgers: TallyPrime cannot determine the TCS applicability of a duty ledger because the required Nature of Goods is not configured.
• TCS rate: The TCS rate is not specified for the selected Nature of Goods.

Transaction details

• Nature of Goods mismatch: The Nature of Goods selected in the transaction does not match the Nature of Goods configured in the relevant master.
• Booking and Booking with Collection links: A Journal voucher (Booking) is not linked to the corresponding Journal voucher (Booking with Collection).
• Cash transaction details: Collectee details such as the party, collectee type, or PAN are missing for a cash transaction.
• Collection links: TCS collected through a Journal voucher (collection voucher) is not linked to the corresponding sales voucher.
• Transaction conflicts: The transaction contains conflicting TCS details that were accepted by overriding the predefined tax details.

Review Transactions Included in the Return

The Included in Returns section displays vouchers that have the requisite information in their corresponding masters and transactions to comply with the requirements for filing the returns.

1. Drill down from Included in return to review the transactions that will form part of the return.
2. Review the transactions included in the return and ensure that the relevant transactions are reported correctly.
3. If any transaction details are incorrect, drill down to the relevant transaction and alter the required details.

Review Not Relevant in this Return

Displays the vouchers that are excluded from the return.

1. Drill down from Not Relevant in this Return to review the excluded transactions.
2. Drill down from the required category or voucher type.
3. Select the required transaction to view or alter its details.

Review Collection Details

The Collection Details section denotes the type of collection under which the included transactions are grouped.

1. Drill down from Collection Details and select the required collection to view the TCS collections included in the return.
2. To view the PAN number of each buyer/collectee, press F12 (Configure) > Ctrl+H (Change View), and set Show PAN Number to Yes.

Review TCS Payment Details

1. Drill down from TCS Payment Details to review the TCS payment vouchers for the selected period.
2. Select the required Nature of Goods under Particulars and press Enter to view the corresponding payment vouchers.
3. Select the required payment voucher and press Enter to view the collection vouchers recorded for the selected party.

Save Form 27EQ

You can save the return after reviewing the exceptions. The steps differ depending on whether any Uncertain Transactions remain unresolved.

When there are no uncertain transactions

1. Press Alt+B (Save Return).
   
2. Select Yes to save the return.

When there are unresolved uncertain transactions

1. Press Alt+B (Save Return).
2. Select Yes to save the return without resolving the exceptions.
   

Recompute Form 27EQ

When transaction details are changed after saving the return, recompute the return to include the changes.

1. Open Form 27EQ for the same period for which the return was saved.
   If the return values have changed, the message “The return values might have been changed” appears along with the Modified Masters and Modified Vouchers sections.
2. Review the modified details and drill down from Created, Altered, Cancelled, or Deleted vouchers to review the affected transactions.
3. Press Alt+W (Recompute).

The modified transaction details are included in the report and the values are recalculated.

Overwrite the Recomputed Information

After recomputing:

• If the count of Uncertain Transactions is zero, you can overwrite the existing return or save the recomputed values as a revised return.
• If the count is not zero, you can only overwrite the existing return.

1. Press Alt+B (Overwrite).
2. Press Enter to accept and overwrite the data with the modified details.
   

Save as Revised

You can save recomputed values as a revised return without overwriting the existing information.

1. Press Alt+H (Save as Revised).
2. Press Enter to accept and save the revised return.

Save as Revised is available only when the count of Uncertain Transactions is zero.

Export Form 27EQ

You can export Form 27EQ in the text format.

For e-TCS returns for periods up to 31 March 2026, export Form 27EQ. For periods on or after 1 April 2026, export Form 143.

1. Press Alt+G (Go To) > type or select Form 27EQ > and press Enter.
2. Press Alt+B (Save Return).
   Form 27EQ can be exported only after it is saved. The report closes after it is saved, so reopen Form 27EQ.
3. Press Alt+E (Export) > E-Return.
4. In the Export Report screen, select the required File Format. It is SDF (Fixed Width) by default.
5. Specify the Folder path.
6. Press Enter to export the data.
   

You can validate the exported text file using the applicable FVU and proceed with filing the TCS return.

Update Form 27EQ Text File as per File Validation Utility (FVU)

Depending on the FVU version applicable to your return, you may need to update certain fields in the exported Form 27EQ text file before validation.

Update Form 27EQ Text File as per FVU 7.5/7.6

The FVU 7.5/7.6 requirements introduced two new fields in the batch header for Section 194P.
These fields are not applicable to Form 27EQ.

• Field 70: Count of Section 194P Details Record
• Field 71: Batch Total of Gross Total Income as per Section 194P Details

1. Export the Form 27EQ text file.
   1. In Form 27EQ, press Alt+E (Export) > E-Return.
   2. In the Export screen, configure the Folder Path and select Send.
2. Open the exported text file in Notepad.
3. In the Batch Header (BH) line, after the GSTIN field, add two caret symbols ^^ for fields 70 and 71.
4. Save the text file.
   

Update Form 27EQ Text File as per FVU 8.2

The FVU 8.2 requirements require updates to the Collectee Detail Record (DD) in the exported Form 27EQ text file.

Field 8: Collectee Code

Refer to Annexure 8 – List of Collectee Codes and update the applicable collectee code in field 8.

1. Export the Form 27EQ text file.
   1. In Form 27EQ, press Alt+B (Save Return).
   2. Press Alt+E (Export) > E-Return.
   3. In the Export screen, configure the Folder Path and select Export.
2. Open the exported text file.
3. In the Collectee Detail Record (DD) line, remove the value in field 8 and enter the applicable collectee code as per Annexure 8.
4. Save the text file.
   

Field 33: Section Code under which payment made

Section Codes as per Annexure 2 need to be sent in field 33 of the Collectee Detail Record (DD).

1. Press Alt+G (Go To) > Create Master/Alter Master > TCS Nature of Goods.
2. Enter the applicable Section and Payment code.
3. Record a transaction using the TCS Nature of Goods.
4. Open Form 27EQ and export the e-TCS text file.

The exported text file captures the section code from the master in field 33.

Field 48: Filler 14

Field 48 is a new field in the Collectee Detail Record (DD). No value should be specified in this field.

1. Export the Form 27EQ text file.
2. Open the exported file.
3. In the Collectee Detail Record (DD) line, after field 47, add one delimiter ^ for field 48.
4. Save the text file.

Field 49: Whether collectee opting out of taxation regime u/s 115BAC (1A)?

Field 49 is mandatory for statements pertaining to FY 2023–24 onwards. Enter Y or N based on applicability.

1. Export the Form 27EQ text file.
2. Open the exported file.
3. In the Collectee Detail Record (DD) line, update field 49 with Y or N.
4. Save the text file.
   

Fields 50, 51, 52, and 53

The following fields have been added to the DD details:

• Field 50 – Filler15
• Field 51 – Filler16
• Field 52 – Filler17
• Field 53 – Filler18

No value should be specified in these fields. Add four delimiters manually as ^ ^ ^ ^.

1. Export the Form 27EQ text file.
2. Open the exported file.
3. In the Collectee Detail Record (DD) line, add four delimiters as ^ ^ ^ ^ for fields 50 to 53.
4. Save the text file.
   

Form 143

With the introduction of the Income Tax Act, 2025, Form 143 has replaced Form 27EQ for filing quarterly e-TCS returns. Form 143 is applicable from Tax Year 2026–27 onwards, and the first return under the revised format is for Q1 (April–June 2026).

In TallyPrime Release 7.1, Form 143 provides the same information and functionality as Form 27EQ. Enhancements to support the revised Form 143 filing requirements will be introduced in upcoming releases.

To view Form 143:

1. Press Alt+G (Go To) > type or select Form 143 > and press Enter.

For periods up to 31 March 2026, e-TCS returns are exported from Form 27EQ. For periods on or after 1 April 2026, export them from Form 143.

Questions and Answers

Which form should I use for my TCS return?
Use Form 27EQ for periods up to 31 March 2026. Use Form 143 for periods on or after 1 April 2026. 

Can I export Form 27EQ before saving the return?
No. You need to save Form 27EQ before exporting it. After saving, reopen the report and export the return.

Can I save Form 27EQ if some uncertain transactions are unresolved?
Yes. You can save the return even when exceptions remain unresolved. However, Save as Revised is available only when the count of Uncertain Transactions is zero.