As you all are aware that TDS return date has almost reached for Q1 FY 14-15. One of my client has no tds deduction responsibility except that he uses transporter services. Uptil now, I have been sending his nil TDS return with entries of transporters only with appropriate flag. The problem is that in this Q1 of 14-15 no such transporter service has been used by the client and therefore no return is required to be filed for TDS.

The TDS CPC website has started a service of declaration of reasons for non filing of tds returns.Since, Nil return is being filed everytime by us I am unable to open his Account with TDSCPC site as they require a non Nil challan which we don't have. Due to not having an account on the site I am unable to post this declaration. I am a bit worried as the client might get served with non filing of return notice.

What could be the remedy to avoid any such notice.


Posted 3 years, 6 months ago by Kamaldeep Singh

Filing Nil TDS return is not compulsory. If TDS liability does not arise, there is no need to file the tds returns.

You have to file the return only if tds was payable.

See section 31A

31A. (1) Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:—
(a) Statement of deduction of tax under section 192 in Form No. 24Q;
(b) Statement of deduction of tax under sections 193 to 196D in—

  • (i) Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
  • (ii) Form No. 26Q in respect of all other deductees.

After reading section you can assume that only person who had a responsibility to deduct tax should file the returns.

Also section 200(3) which reads as:

200.(3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed.

Only person deducting TDS should file the return.

If you dont have any liability to file return, you will not receive any notice.

Posted 3 years, 6 months ago by Rahul Rai

Hi Rahul.

Thanks for the prompt reply. The question that comes to mind is that if TDS return is required to be filed only when TDS is deducted, then why this new service of declaration of non filing of return has been started by Traces?

Posted 3 years, 6 months ago by Kamaldeep Singh

Did you try to enter challan details of some other quarter where you had remitted TDS ?

Posted 3 years, 6 months ago by HS VEDANTA DESHIKA

As per Income tax rules, NIL eTDS Returns is not mandatory because of which, the department is not able to find out the difference between the following 2 types of deductors. 

  1. Deductors required to file return but have not filed TDS return .
  2. Deductors not at all required to file TDS return.   

After getting updation of status through this facility, IT department can get the details of wilful defaulters. 

Posted 3 years, 6 months ago by HS VEDANTA DESHIKA

Actually, the client is not required to deduct TDS. So, there is no challan as such.

Posted 3 years, 6 months ago by Kamaldeep Singh

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