Form 27C Income Tax Act 1961 - Free PDF/Word Template India

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Title: FORM NO. 27C OF INCOME TAX ACT, 1961

Struggling to comply with TDS provisions under Section 194Q? Get our ready-to-use Form No. 27C format of Income Tax Act, 1961 for seamless declaration to sellers in India.

What is Form No. 27C?

Form No. 27C of the Income Tax Act, 1961 is a crucial declaration form prescribed under Section 194Q. Introduced to regulate Tax Deducted at Source (TDS) on purchases of goods exceeding ₹50 lakhs in a financial year, this form allows buyers to certify to sellers that TDS will be deducted and deposited with the government. It prevents unnecessary TDS deductions at the seller's end when the buyer undertakes the responsibility.

In the Indian tax landscape, Form 27C format ensures smooth business transactions by bridging the gap between buyers and sellers. Whether you're procuring machinery, goods, or immovable property, using the correct Form No. 27C sample safeguards against disputes and penalties.

Why is Form No. 27C Important?

Compliance with Form 27C is mandatory for buyers whose aggregate purchases from a seller cross the ₹50 lakh threshold in any previous year. Failure to furnish it can lead to:

1% TDS deduction by the seller on the entire purchase value.
Interest and penalties under Sections 201 and 271C.
Disrupted cash flows and additional compliance burdens.

Key benefits of using a professional Form 27C format include:

Avoiding double TDS deductions.
Ensuring accurate tax credits for sellers.
Streamlining audits and ITR filings.
Ready compliance for e-commerce, manufacturing, and trading sectors in India.

Key Elements of Form No. 27C Format

Our customizable Form 27C template in PDF/Word format includes all essential sections as per Income Tax Department guidelines:

Buyer's Details: Name, PAN, TAN (if applicable), address, and contact information.
Seller's Details: Name, PAN, address.
Transaction Details: Description of goods, quantity, value exceeding ₹50 lakhs, financial year.
Declaration Clause: Certification that TDS under Section 194Q will be deducted/deposited.
Date and Place: Execution details.
Signature: Of the authorized signatory with designation.

This ready-to-use legal template is formatted precisely to meet court and tax authority requirements.

Who Should Use Form No. 27C?

Businesses and companies engaged in bulk purchases of goods.
Traders, manufacturers, and importers in India.
Individuals or HUFs buying high-value assets like machinery or property.
E-commerce platforms and online sellers dealing in large volumes.

Common use cases span civil transactions, business deals, and commercial agreements where TDS applicability arises.

Download Form No. 27C Format Now!

Secure your free download of Form No. 27C sample in editable Word/PDF format. For premium options, customize it instantly with AI assistance or professional legal help. Paid templates offer unlimited edits, legal vetting, and priority support.

Customize and Stay Compliant

While our Form 27C format is ready-to-use and 100% compliant with Income Tax Act, 1961 rules in India, we recommend consulting a tax expert or CA for specific scenarios. Tailor it to your needs and explore related templates like Form 16A, Form 27D, or other TDS declarations for complete tax compliance.

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FORM NO. 27C OF INCOME TAX ACT, 1961

FORM NO.27C

[See rule 37C]

Declaration under sub-section (1A) of section 206C of the Income-tax Act,

1961 to be made by a buyer for obtaining goods without collection of tax

PART I

I/We* ………..,*son/daughter/wife of ……., resident of …. @, do hereby

declare –

1. that *my/our present occupation is ………;

2. that ………………………… is to be utilised for [nature of the

goods referred to in the Table in sub-section (1) of section 206C]

the purpose of *manufacturing/processing/producing articles or things and

not for trading purposes;

3. that *I am/we are assessed to income-tax by the Assessing Officer …..

Circle/Ward and the permanent account number allotted to me is ….;

that *I was/we were last assessed to income-tax for the assessment year ….

by the Assessing Officer ….. Circle/Ward and the permanent account number

allotted to me is ….;

that *I/we have not been assessed to income-tax at any time in the past but

I fall within the jurisdiction of the Chief Commissioner of Commissioner of

Income-tax ….;

…………

**Signature of the

declarant

Verification

*I/We …. do hereby declare that to the best of *my/our knowledge and belief what

is stated above is correct, complete and is truly stated.

Verified today, the ….. day of …….

Place …..

……………

Signature of the declarant

Note:

1. @ Give complete postal address.

2. The declaration should be furnished in duplicate.

3. *Delete whichever is not applicable.

4. ** Indicate the capacity in which the declaration is furnished on behalf of a

Hindu undivided family, association of persons, firm etc.

5. Before signing the verification, the declarant should satisfy himself that the

information furnished in the declaration is true, correct and complete in all

respects. Any person making a false statement in the declaration shall be

liable to prosecution under section 277 of the Income-tax Act, 1961, and on

conviction be punishable -

(i) in a case where tax sought to be evaded exceeds one lakh rupees,

with rigorous imprisonment which shall not be less than six months

but which may extend to seven years and with fine;

(ii) in any other case, with rigorous imprisonment which shall not be less

than three months but which may extend to three years and with fine.

PART II

[FOR USE BY THE PERSON TO WHOM THE DECLARATION IS FURNISHED]

1. Name and address of the person responsible for

collecting tax at the time of the sale of the goods

referred to in paragraph 2.

2. Date on which the declaration was furnished by

the declarant.

3. Date of debiting of the amount payable by the

buyer to the account of the buyer or receipt of

the amount payable from the buyer in cash or by

issue of a cheque or draft or by any other mode.

Forwarded to the Chief Commissioner or Commissioner of Income-tax. …

Place ……..

Date ……...

………………

Signature of the person responsible for

collecting tax at the time of the sale of

the goods referred to in paragraph 2.

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Important Guidelines

Form No. 27C, known as the "Form for furnishing information under sub-section (1) of section 138 of the Income-tax Act, 1961," is used in India for reporting payments made to contractors or sub-contractors for certain specified transactions. It's essential for businesses and government entities to comply with tax regulations and avoid tax evasion. Here's a brief guideline on its use and

Common Mistakes to Avoid:

Usage:

Transaction Reporting: Form No. 27C is used to report payments made to contractors or sub-contractors for specified transactions as required under Section 194C of the Income-tax Act, 1961.

Tax Deduction at Source (TDS): It ensures that the payer of the specified transactions deducts TDS and reports these transactions to the Income Tax Department.

Common Mistakes to Avoid:

Incomplete or Inaccurate Reporting: Ensure that all required fields in the form are accurately filled out, including details of the payer and payee, transaction nature, and TDS details.

Missed Deadlines: Adhere to the prescribed deadlines for filing Form No. 27C. Late filing may attract penalties.

Non-compliance: Ensure that the transactions reported are in accordance with the relevant tax laws and notifications to avoid scrutiny or penalties.

Not Seeking Professional Assistance: If you're uncertain about the applicability or reporting requirements of Form No. 27C, consult with a tax advisor or chartered accountant for guidance.

Form No. 27C is crucial for monitoring and ensuring compliance with TDS provisions. By following these guidelines and avoiding common mistakes, businesses and government entities can accurately report and comply with the provisions of the Income-tax Act, 1961.

Frequently asked questions

What is Form No. 27C under the Income Tax Act, 1961?→

Form 27C is a legal declaration by the buyer to the seller, stating that the consideration for immovable property is below Rs. 50 lakhs, exempting TDS deduction under Section 194-IA in India.

Is Form 27C legally valid across India?→

Yes, Form 27C is a prescribed statutory form under the Income Tax Act, 1961, legally valid in all states of India when properly filled and submitted.

Do I need to pay stamp duty on Form 27C?→

No stamp duty is required on Form 27C, as it is a simple income tax declaration, not a contract or agreement requiring stamping in India.

Can I download Form 27C in PDF or Word format?→

Yes, Form 27C is available for free download in editable Word or PDF format, suitable for printing and online submission.

Who should use Form No. 27C and when?→

Buyers of immovable property valued below Rs. 50 lakhs should use Form 27C before payment to inform the seller of no TDS liability under Indian income tax laws.

How can I customize and submit Form 27C?→

Customize Form 27C by entering buyer/seller details, PAN, and property info; submit the original to the seller and keep a copy for records in India.