Form 27C of Income Tax: Declaration, How to File and Download

Tax Collected at Source (TCS) is a system where a seller of certain goods collects taxes from the buyer. Now, if the buyer is not liable to pay any taxes and wishes to inform the seller about the non-deduction of taxes, he/she can submit Form 27C of the Income Tax Act. In this case, the list of specific goods includes timber, scrap materials, tendu leaves, etc.

Keep reading to learn how to file Form 27C, its applicability, the documents required and more.  

What is Form 27C of the Income Tax Act?

As per the Income Tax Act, Form 27C is a declaration form for non-deduction of Tax Collected at Source (TCS) by the buyer of goods to its seller. Rules state that the seller of goods needs to collect taxes from the buyer. However, if the buyer is not liable to pay TCS, he/she can file Form 27C. 

However, he/she needs to be an Indian resident and use all goods purchased to manufacture, produce or process articles or goods. Moreover, the buyer has to provide a duplicate declaration with Form 27C.

Form 27C Declaration of Exemption Under TCS

Form 27C submission allows a total exemption in TCS. The buyer has to submit a duplicate form by declaring that all purchased goods are used for manufacturing or processing purposes and not for trading.

You must note that this declaration needs to be submitted to the seller, who has to provide a copy to concerned authorities before or on the seventh day of the next month.

Form 27C Applicability

Following is a list of sellers, goods and buyers who fall under the applicability of Form 27C: 

Why is Form 27C Required?

Form 27C is required to determine the buyer's eligibility for TCS exemption. The buyer tells the seller that the transaction comes within the appropriate parameters, allowing them to claim the exemption. This document is tangible proof, safeguarding the buyer's rights and encouraging tax transparency.

When submitting Form 27C, it is critical to include correct information. Buyers must carefully fill in all details like their name, address, PAN, purchased goods and utilities. Remember to crosscheck all the information before submitting. Any mistake in filling out this form will require you to repeat this process all over again. Furthermore, it may involve additional steps.  

Form 27C Download

You can download Form 27C by following some simple steps. They are:

1. Visit the official website of the Income Tax Department of India (incometaxindia.gov.in).
2. Click on “Downloads”.
3. In the drop-down menu, click "Income Tax Forms". Here, you can find the list of all relevant forms that a taxpayer may need.
4. Search for Form 27C in the search bar.

Now you can download the form either as a fillable form (word document) or PDF form as per your requirement.

Note: Only a buyer can download Form 27C to fill up details under the section "Part I- Details of the buyers". As a buyer, you have to fill in all the details and hand over the filled form to the seller for further proceedings.

How to File Form 27C?

Now, if you are a seller, you need to know how to file Form 27C online. Follow the steps given below:

1. Login into the official portal of income tax, that is, "www.incometax.gov.in", by using TAN as a USER ID.
2. Navigate to the e-file option.
3. Go to “Income Tax Forms” and select “File Income Tax Forms”.
4. Select option “Persons not dependent on any Source of Income” and go to Form 27C.
5. Fill in all the details in Part I (which includes all details of the buyer) and Part II (which includes all details of the seller).
6. Scan and upload Form 27C Part I that you receive from the buyer under the attachment section of Part II. 
7. After filling in all information you can proceed to submit Form 27C and claim deductions for TCS.

Documents Required to File Form 27C

Here are the documents required for filing Form 27C:

• Buyer details including name, status, PAN or Aadhar card number, mobile number, email id, nature of goods, nature of business and also purpose to utilise such goods.
• The date on which Form 27C declaration has been provided.
• The date on which the buyer's account is debited for the amount owed by him/her or when that individual paid the due amount in cash, or by issuing a cheque or draft.
• Self-attested copies of Form 27C declaration made by the buyer. He/she has to state the purpose of the goods purchased, which cannot include trading purposes.

Final Words

In case you are a buyer, understanding how to file Form 27C is important while claiming exemptions from Tax Collection at Source. But, if you are a seller of the specified goods mentioned above, you must collect the declaration form from your buyer and fill in your details properly to facilitate the exemption. 

Also, downloading and filing Form 27C is simple, since you can locate, fill out, and file the form by visiting the income tax department's official website.

Click here to download Form 27C in PDF format.