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.
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.
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.
Ans: A Declaration for not filing the TDS Statement can filed by logging into the CPC (TDS) Website: www.tdscpc.gov.in
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).
All fields are mandatory to fill.
“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.
User will not be able to declare a statement for a Financial Year, Quarter and Form Type for Non-Filing for the following cases:
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: email@example.com, Mobile: +91-9953199493)
Republished with Amendments