CA Pratik Anand
The last date for filing the TDS Statements for the Second Quarter of FY 2014-15 is already over. There will be many deductors who did not deduct any tax during the relevant quarter and therefore did 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:
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:
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.
‘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.
“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.
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.
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:
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)