Under the Income-tax Act, 2025, the familiar Form 27C has been mapped to Form 127 in the new e-Filing architecture. The Income Tax Department now provides Form 127 as the corresponding form under the 2025 Act and has released a dedicated electronic filing manual for it.

The underlying mechanism remains commercially relevant where a buyer furnishes the prescribed declaration for eligible purchases for which tax is not to be collected at source, subject to the applicable statutory conditions. What changes operationally is the reporting environment: businesses working under the new Act should update references from Form 27C to Form 127 in their tax documentation and e-Filing process.

Business impact

For manufacturers, traders and other businesses dealing in transactions potentially subject to TCS, the declaration should not be viewed as an isolated document received from the customer.

Finance teams should connect the buyer declaration with the invoice, customer master, nature of goods, reason for non-collection and subsequent tax reporting. ERP/SOP references that still instruct employees to obtain or process “Form 27C” should also be reviewed for the new-Act period.

Mardia Global | Tax & Accounting Insights for Businesses in India