The last date for filing the TDS Statements for the Forth Quarter of FY 2019-20 is coming closer. There will be many deductors who did not deduct any tax during the relevant quarter and therefore they will not file any statement for deduction of tax at source u/s 200(3) of the Income Tax Act’1961.

But do you know that for such deductors who have a TAN Number but have not filed the TDS statement as they did not deduct any tax during the relevant tax period, CPC (TDS) has started a functionality where the deductors can file a NIL Declaration i.e a declaration that the deductor did not deduct any tax during the relevant tax period and was subsequently not liable to file a tds statement.

Ques: What is a NIL Declaration of TDS Statement?

Ans: A NIL Declaration is basically a declaration for non-filing of TDS Statements for those deductors who were not liable to deduct any tax during the relevant quarter or have not deducted tax during any quarter and subsequently did not file a TDS Statement U/s 200(3) of the Income Tax Act’1961 for any quarter.

Ques: Is it mandatory to file a NIL Declaration?

Ans: As per Income Tax Act’1961 and the Income Tax Rules it is not mandatory file a NIL TDS Return.

Since filing NIL TDS Return was neither mandatory nor possible. The CPC (TDS) was having a problem distinguishing between:

1. Deductors required to file return but not filed the TDS Return.

2. Deductors not required to file return.

Therefore, In order to prove that the deductor was not required to file a TDS Return, it is advisable that the deductors should file A NIL Declaration of TDS Statement.

Ques: Where can I file a declaration for not filing a TDS Statement?

Ans: A Declaration for not filing the TDS Statement can filed by logging into the CPC (TDS) Website: www.tdscpc.gov.in

Ques: What is the procedure for a filing a Declaration for not filing TDS Statement/NIL Declaration?

Ans: Procedure for filing of declaration for non-filing of TDS statement is given below:

1. Login through your registered id at www.tdscpc.gov.in

2. Go to “Statement/Payments TAB after login >then declaration for Non filing of TDS statement (as shown in the picture below).

nil tds 13. On clicking declaration for Non filing of TDS statement link you will get screen with options as shown below:

  • Select financial year.
  • Select Quarter.
  • Select Fom type- 24Q, 26Q, 27Q or 27EQ.
  • Select reason for non-filing of statement from drop down menu.

All fields are mandatory to fill.

  • In the Financial year option, the system shows 2013-14 and 2014-15. It means that a Declaration for non-filing of TDS Statement can filed for these two years only.
  • In the Reasons column, the deductor can choose from the following options as shown below:
  • Not liable to deduct for the selected statement period.
  • No Payment made/ Credit to Deductee.
  • Temporarily Business Closed
  • Permanently business closed
  • Payment below threshold to deductee
  • Branch Shifted
  • Any other reason

nil tds 2Also note following points:

  1. Fields marked by asterisk (*) are mandatory.
  • ‘Specify the exact reason’ field will be mandatory if user selects ‘Any Other Reason’ in ‘Reason’ drop down.
  • If deductor has permanently closed his business, the deductor should surrender his TAN to the jurisdictional A.O.
  • After giving the reason for non-filing, Click proceed button after selecting required data. In next screen, you have to give a declaration/certificate as shown in the picture given below.

nil tds 3 5. After certificate, following message will be shown.

“Filing Status for the statements selected by you has successfully changed. You will receive the details of the statements for which filing status has changed on your email.”. After this the your statement status will change to NON-FILING.

  1. The deductor can change back this status from non-filing and can file return, if required at later stage or you have wrongly updated status for incorrect period. But change facility is available for only one time for a selected period. To change the status you have to go again through “Statement/Payments TAB after login > then declaration for non-filng of TDS statement.
  • Statement selected earlier as “non-filing can be updated by selecting the statement for a given period and click change filing status, and in next screen, you have to reconfirm your request by clicking the proceed button.

nil tds 4

  1. After adding first statement to non-filing status, next time you will get screen as shown above and you can add other statement to non-filing status through add statement link.

Other Important points

User will not be able to declare a statement for a Financial Year, Quarter and Form Type for Non-Filing for the following cases:

  • If user has already declared that statement for Non-Filing.
  • If user has changed the filing status of that statement from Non-Filing to Filing.

Traces website has provided the pictorial E-tutorial for the same on their site for user’s better understanding. The link for the same is as under: https://contents.tdscpc.gov.in/en/declaration-of-non-filing.html

Hope you find the above information relevant and useful in your daily practice

(The author is a CA in practice at Delhi and can be contacted at: E-mail: capratikanand@gmail.com, Mobile: +91-9953199493)

Read Other Articles of CA Pratik Anand

Republished with Amendments

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Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 54
Pratik Anand is the founder of youronlinefilings.com, an online startup for business registrations, annual business compliance services, Tax filings, book keeping, legal consultancy etc. He is a Chartered accountant by profession and has special flair and expertise in the area of direct Taxation. H View Full Profile

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33 Comments

  1. Geetha Gupta says:

    Dear Sir,
    What is the last date for declaring non-filing status for each quarter? Is there any extension due to Covid-19?

  2. savitha mahesh says:

    TDS return Q1 24Q filled next Q2 and Q3 decleared nil rated retun in traces and q4 also filled can we able to generate from 16

  3. TARA ASRANI says:

    I want to file my tds of q2 ay 20-21 is q4 becasue i could not file q2 in correct time , Q2 details have contractor with zero deduction so my question is can i file my q2 file now without late filing levy as there are nil challans..

  4. baptist fernandes says:

    non filing of returns declaration under Permanently Business closed.
    when i surrender my TAN , the officer asked me to pay the outstanding payment which was interest and error done by Bank.
    i want to know whether my declaration for non-filing will be accepted or NO.

  5. Dindayal says:

    Hi, Since 15G/15H has resulted in nil return , kindly let me know whether I need to uploan 15G/15H or simply non filing return, mentioning not liable to file .

  6. deb says:

    Sir I have filed 24q in wrong TAN. This is accepted by TIN Centre due to this TAN is having another valid DDO. Filed TAN is not having BIN for this quarter. what to do. please help

  7. NItesh says:

    Dear sir

    one of my client he started business onwards 2010. he is paid leagal charges about 20 lakh in his business but not deducted tds on any payment so he would file tds return and say that what will be panelty on regards this so please tell me ,how i do solve this problem and how to file tds returns from 2010

  8. NILAM KUMARI says:

    dear sir

    we filled tds return (24Q) for f.y 2011-12 and i have acknowledgement and receipt no for the same but if login in traces site then no data shown for this year filled return.

  9. ajay says:

    hello sir i would like to ask if tht is mandate to file a returns of company if it is in silent mode from last 1 year as we have opened a new company in 2013 but it seems too be we r not getting any business due to i do not want to file its automatically understood the account is nil and i spoked with ca he says it mandate to file a returns of pvt ltd company….
    and asking for 20 thousand plz guide me
    regards ajay

  10. subhash says:

    I have receeived TDS exemption certifcate u/s197 should I will be filled in TDS retrun and how to filled . Please guide to me.

  11. Bhabuk says:

    After filing declaration, if during internal audit it is found that assessee is required to file TDS return,can he do so? It would not amount of filing wrong declaration? Will there be any penalty for filing wrong declaration? further kindly tell me the procedure for filing the return

  12. S K MISHRA says:

    Sir,

    Our company is having branch in 50 locations all over India. There is one PAN but each branch is having their separate PAN. We make payment to contractors at branch level & file Form 26Q but our payroll of employee is Centralised i.e paid from one location i.e corporate office who file Form 24Q.

    Does each branch to file declaration for non filing of Form 24Q, since no salary payment is made at branch level.

  13. PRAVEEN BHARDWAJ BANKER says:

    I have a problem with the TDS Return for financial year 2009-10.
    This return has been filed by Aashirwad company in my TAN NO.
    When Ashirwad compay filing TDS Return it wrongly cotated my Branch TAN.
    In year Feb 2015 I have received Notice for demand from Income tax office.
    I have recived a letter from Ashirwad company and company admit their fault and submit the letter to Income Tax office Raipur. I have also submit this letter to Income Tax Department Indoer ,but matter is stil pending.
    Kindly guide me.

  14. Y S Parab says:

    After filing declaration, if during internal audit it is found that assessee is required to file TDS return,can he do so? It would not amount of filing wrong declaration? Will there be any penalty for filing wrong declaration? Deductor has to file declaration for all types of tds returns i.e. 24q,26q,27q etc It means multiple declarations are to be filed – See more at: https://taxguru.in/income-tax/filed-tds-returnfile-nil-declaration-traces.html#sthash.FlyYKlDh.dpuf

  15. sandeep gulia says:

    dear sir please teel me about not tds return file any previous year and not registered on tds site how handle the problems .

  16. Nilesh Jain says:

    sir, decalation of non filing of tds in Form type menu how kind I choose the form type when all type of form is applicable

  17. C.P. JOSHI says:

    Hello Sir,
    In our firm we have been already filed our 1st, 2nd, and 3rd quarter TDS return, but by mistake we forgot our nil return statement up to 3rd quarter. Sir is it possible to revise both three previous quarter return and one more thing our NIL statement have about 100 to 150 PAN numbers…

  18. Dikshit Sharma says:

    I recently received an INTIMATION U/S 200A OF THE INCOME TAX ACT, 1961 AND NOTICE OF DEMAND U/S 156 FOR THE PAYMENT OF LEVY OF FEE U/S 234E OF INCOME TAX ACT, 1961.
    Basically this was due to late filing of TDS on sale of property.
    Do I need to have a TAN to pay this demand?

  19. hitesh k c says:

    to gi parvathi,
    form 16/16a being a certificate of tax deducted can not and need not be down loaded as you have filed a nil tds returns for the quarter.

  20. PPV SANTANAM says:

    Thank you very much Sir. Wonderful collections. Excellent.

    Any provision with you to send directly to my EMail Ids(santanamppv@gmail.com & santanamppv@yahoo.co.in), please provide me.

    My query, two company not filed auditor’s appointment so far. I am processing now. Any way avoid to pay penalty. Previously I used to put receipt of Appointment letter with in 30 days period. You opinion needed. Now i am in Jan’15 & almost full penalty will come.

    Thank you sir.

  21. rahul says:

    Dear Sir,
    Sub-Doubt abt Form 15H/15G.Can i use this form in below mentioned cases.

    1)-if my income does not exceed the limit of taxable income now if i participate in any contest(winning From Lotteries & Puzzle (Sec-194B)) and won the amount of rs 10050/-
    2)-I repaired any party’s tool and charged it for rs-90,000/- now party making payment for it But my total income does not exceed taxable limit. can i use the form and take benifit of no TDS deduction.
    3)-and in all cases 194D for insurance Commision received more than 20000/-, 194H for commission & Brokerage received more than 5000/-,Rent on land or building received- 194I more than180000/-…in all case total income does not exceed taxable limit….

  22. Vishnu says:

    Dear Sir,

    One of my clients (a bank) has deducted tds on salary and rent. TDS return has been filed and form 16A downloaded. There is no tds for fixed deposits during the last quarter. Should I file NIL tds return for not deducting any tax on interest on fixed deposits?

    Regards,
    Vishnu

  23. CA Gaurav Mittal says:

    As from 1st quarter 2014-15 onwards, it is necessary for a TAN holder to intimate the department for TDS RETURN having nil TDS through TRACES Portal

    But for registering on TRACES site we need to provide details of the previous return filed,

    And for those cases in which no TDS return is filed previously i.e befor 2nd quarter 2014-15 & also for current Quarter, assessee is having NIL tds, then without registering on TRACES PORTAL, how online intimation can be provided.

    Please guide what is to be done in the same context.

  24. CA Vitrag Modi says:

    Dear Sir,
    I have obtained TAN in the Sep-2014. I have not deducted any TDS in Q2 of 2014-15. I am unable to register on Traces. It (CPC-TDS) says I must file one NON NIL Tds return first to get registered on Traces. So please advise how to file NIL declaration in this case.?

  25. hitesh k c says:

    After filing declaration, if during internal audit it is found that assessee is required to file TDS return,can he do so? It would not amount of filing wrong declaration? Will there be any penalty for filing wrong declaration? Deductor has to file declaration for all types of tds returns i.e. 24q,26q,27q etc It means multiple declarations are to be filed

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