Issue of TCS Certificates (Form 27D) for Q4 of FY 2025-26 – Due Date and Compliance Requirements

Tax Collected at Source (TCS) is an important compliance requirement under the Income-tax Act, 1961. Businesses that collect TCS are required to file quarterly TCS returns and issue TCS certificates to buyers. As the financial year 2025-26 has ended, taxpayers and businesses should be aware of the due date for issuing TCS certificates for the fourth quarter.

What is Form 27D?

Form 27D is the TCS Certificate issued by the collector of tax to the collectee (buyer). It serves as proof that TCS has been collected and deposited with the Government.

The certificate contains important details such as:

• Name and PAN of the collector and collectee
• TAN of the collector
• Amount received and TCS collected
• Rate of TCS applied
• Date of collection and deposit of tax

The certificate enables the buyer to claim credit for the tax collected and reflected in Form 26AS and the Annual Information Statement (AIS).

Due Date for Q4 FY 2025-26

For the quarter ending 31 March 2026 (January–March 2026):

• Due date for filing TCS Return (Form 27EQ): 15 May 2026
• Due date for issuing TCS Certificate (Form 27D): 30 May 2026

The due date for issuing Form 27D is prescribed under Rule 37D of the Income-tax Rules, 1962. The certificate must generally be issued within 15 days from the due date of furnishing the quarterly TCS statement in Form 27EQ.

Why Timely Issuance of Form 27D is Important

Timely issuance of TCS certificates helps:

• Buyers claim TCS credit without difficulty.
• Ensure accurate reconciliation with Form 26AS and AIS.
• Reduce the risk of compliance notices and disputes.
• Maintain proper tax records and documentation.

Consequences of Non-Compliance

Failure to comply with TCS provisions may result in:

• Interest for late payment of TCS under Section 206C.
• Penalties for non-filing or delayed filing of TCS statements.
• Difficulties for buyers in claiming tax credit.
• Increased scrutiny during assessments and audits.

Key Action Points for Businesses

1. Verify that all TCS collections for January–March 2026 have been correctly reported.
2. Ensure Form 27EQ has been filed by the prescribed due date.
3. Download and issue Form 27D through the TRACES portal.
4. Share the certificate with buyers promptly and maintain proper records.

Conclusion

Businesses liable to collect TCS should ensure that Form 27D for the fourth quarter of FY 2025-26 is issued on or before 30 May 2026. Timely compliance not only avoids penalties but also helps buyers claim their tax credits seamlessly and maintains smooth business relationships.

Sources: Rule 37D of the Income-tax Rules, 1962; Income Tax Department Compliance Calendar; TCS return filing provisions under Section 206C of the Income-tax Act, 1961.

For expert guidance on this topic, contact your tax professional today.