Is it mandatory to file NIL TDS Return even if no income tax is deducted?

[Anonymous]

I hold a TAN Number for deducting income tax at source (Tax Deduction at Source or TDS). During the last quarter, I had not deducted any TDS since I did not pay any amount on which TDS is required to be deducted. However, I got SMS message from the TAN authorities asking me to file TDS return otherwise Rs. 200 per day fine would be imposed. My question is whether it is compulsory to file even Nil TDS Return, even if I have not deducted any TDS during a quarter?

[Dr. Ashok Dhamija]

It is not mandatory to file Nil TDS Return if you have not paid any amount to someone during a quarter on which TDS is required to be deducted. However, you have to file a declaration for non-filing of the TDS Return for the quarter concerned. For this purpose, visit the Traces website. Login with your TAN details. After login, in the top menu bar, from the “Statements / Payments” menu item, select the option “Declaration for Non-Filing of Statements”. Provide relevant details for non-filing of the TDS Return for the quarter which no TDS Return is required to be filed.

     

---

Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

[Author]

Posts