Many times, we faced this situation where we have TAN but we do not have any transaction for which we need to file any TDS return for that quarter. So in such situation most of people just don’t file return as well as they don’t even intimate regarding this to the department. Due to this practice of non-intimation, the Income Tax department has been finding it difficult to differentiate between the following two types of deductors.

1. Deductors required to file return but not filed.

2. Deductors not required to file return due to NIL TDS

Henceforth, the Department has introduced a new functionality in the TRACES site wherein the persons who are not required to submit a return of TDS due to non applicability in any particular quarter shall have to submit a Declaration for the same on TRACES.

Important Information on Declaration of Non filing of Statement

  • If a Deductor is not required to file statement for a particular period, then, Intimation or Show Cause notice from the Department can be avoided by giving Non-Filing declaration
  • Non-Filing Declaration is implemented from Financial Year 2013-14 onwards
  • It is required to select the reason for Non-Filing of statement from the dropdown list
  • Confirmation mail is sent to Deductor on registered e-mail ID after completion of Non- Filing Declaration.

Guidelines for Non- Filing Declaration

  • Non-filing to filing status is allowed only once.
  • Non-filing declaration cannot be submitted if the statement is already filed.

Procedure for filing of Nil TDS return/ declaration for non filing of TDS statement is given below:

1. Login through your registered id at www.tdscppc.gov.in ( TRACES site)

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

3. Fill the details require such as Financial Year, Quarter, Form Type, reason for non filing of return. After that click on ‘Add Statement Details’

4. Once the statement is added, click on proceed and then check the declaration box provided by the department.

5. Once you agree with the declaration, verify the details and proceed the transaction

6. The deductor will received the confirmation E-mail for the same on their registered email ID

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

Republished with Amendments

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36 Comments

  1. HIMALAYA SINHA says:

    If, I have to file Declaration for Nil Filing in Traces Portal Than in Which form i have to file, in form 24Q, 26Q or both or in all forms.

  2. ashish jain says:

    Sir,
    I m an individual and not liable to audit u/s 44AB. I have TAN number. am i liable to deduct tax as i have allotted TAN number.

    1. Asha Kanta Sharma says:

      You have to deduct tax as per sections and rates specified in Income Tax Act. If it exceeds the slabs TDS needs to be deducted at the rates specified

  3. VIKRAM says:

    IF YOU ARE IN DOUBT THAT AFTER DECLARATION OF NIL RETURN WE ARE NOT LIABLE FOR PANELTY IF YOU FIRST DECLARE NIL THEN AFTER THAT QUATER YOU FILE RETURN FOR SAME THEN ITD IMPOSED PANELTY

  4. begum says:

    Is it mandatory to declare nil in the traces?if not declared shall we have to pay penalty for that? please clarify my doubts its urgent please sir

    1. Asha Kanta Sharma says:

      Even I am searching for the same and till now can not find any such penalty details for non filler declaration.

  5. Sandeep Singh Panchpal says:

    No you need not to file any return in regards to the nil declaration,
    The declaration itself is a proof that there was no TDS deducted, hence no TDS return filed, it is just a form to be filed on the traces site and thats it.

  6. Sandeep Singh Panchpal says:

    In case nil declaration is not filed, Kindly file it in the earliest possible time and also there wont be any penalty on non filing.

  7. MANISH AGGARWAL says:

    i had applied new tan no on the may 2015 now i need to submit the nil declaration, how can i do so? because i am not able to register in traces.?
    plz help

  8. JAYANTHY VAJJALU says:

    HOW THIS DECLARATION IS DIFFERENT FROM CBDT’S MANDATE TO THE DEDUCTORS THAT THEY SHOULD GIVE DETAILS OF ALL DEDUCTEES IN FORM 26Q?
    IF WE FILE THIS DECLARATION WILL WE BE ASKED TO FILE 26Q WITH DETAILS OF ALL DEDUCTEES WHO HAVE SUBMITTED FORM 15G?

  9. RAJENDRAN says:

    DEAR SIR
    WE HAVE NO DEDUCTEE FOR THE SECOND QUARTER FOR FY 2014-15 WHETHER WE HAVE SUBMIT NIL DECLARATION ONLINE HOW TO PREPARE NIL STATEMENT [ RPU VERSION 4.1 ]

  10. hitesh k c says:

    Sir,
    I have following doubts 1) We have filed TDS Quarterly return in form 26q for a particular quarter. We are not required to file TDS return in form no.24q,27q etc for that quarter,do we have to file declaration for non filing of 24q, 27q quarterly statements?
    2) In a particular quarter no tds has been deducted under any section, do we have to file declaration for non filing for all types of quarterly statements?

  11. Pooja says:

    I have same question which Mr.Ajay have..

    I am deducting the TDS at the end of the year only and 1 return for 4th Quarter is filled with the TDS department. In 1st three quarter, I do not deduct the TDS as I do not pay any amount which attract TDS.

    My question is if I do not deduct any TDS or I do not pay any amount during the 1st three quarter, should I need to file the NIL Return in form 26Q for every quarter? Is NIL Return mandatory to be filled in every quarter?

  12. AJAY says:

    I am deducting the TDS at the end of the year only and 1 return for 4th Quarter is filled with the TDS department. In 1st three quarter, I do not deduct the TDS as I do not pay any amount which attract TDS. My question is if I do not deduct any TDS or I do not pay ant amount during the st three quarter, I should file the NIL Return in form 26Q i.e NIL Return is also mandatory to be filled in every quarter.

  13. CA MANOJ KUMAR AGRAWALLA says:

    EVERY PERSON COMING UNDER AUDIT U/S 44AB IS REQUIRED TO MAKE TDS IN CASE OF INDIVIDUAL AND HUF AND FOR ALL OTHER PERSONS CHAPTER XVIIB IS MANDATORY REQUIREMENT. NOW THE QUESTION IS IF A PERSON COVERED UNDER AUDIT BEING INDIVIDUAL OR HUF AND ALL PERSONS COVERED UNDER CHAPTER XVIIB WHETHER REQUIRED TO FILE THE DECLARATION AS MENTIONED ABOVE, THOUGH NOT REQUIRED TO DEDUCT/COLLECT TAX AT SOURCE AND EVEN NOT HAVING A TAN? PLEASE ANSWER

  14. mahesh joshi says:

    BOB gave me TDS cert.on my FD for first three quarters in std form ie generated from It website. However due to some internal issue with IT deptt.
    they are not able to generate TDS for last Quarter and given me the certificate for deduction of TDS amount. Now how i should show the same in my IT Return?

  15. VIJAY DUTT says:

    you need to deduct tax on interest and submit your Tds return for the F.y 2013-14. After you submitted tds return the Income tax department send you a notice for late filing. Then u have to deposit that amount as per notice.

  16. ravi kiran r says:

    You need not deduct tds if the loan is borrowed for your personal reasons and such interest is not debited to firm’s profit and loss account. Else, you could obtain a CA certificate stating that the financial company to whom you have paid interest has paid tax on the interest paid by you by including it in its return of income.. In which case you will be absolved of the liability to deduct TDs..

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