Your urgent attention is invited to relevant CBDT Circulars and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES. But If you are not required to submit  TDS statement for FY 2013-14 and not  filed any TDS Statements in FY 2013-14 , than you are required to submit a declaration by taking appropriate action as suggested under “Action to be taken” in this Article.

Currently, if there is no TDS to be deducted, no action is taken in terms of filing TDS return for the particular quarter. Due to this practice of non-intimation, the Income Tax department is not able to find out the difference between the following two types of deductors- 1. Deductors required to file return but not filed and 2. Deductors not required to file return due to NIL TDS. Henceforth, 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 as suggested in Point No. 3 of this article.
1. Mandatory filing of TDS Statements:  Under the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:

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-

  •  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
  • Form No. 26Q in respect of all other deductees.

It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.

2. Implications of Non/ Late filing of TDS Statements:

  • For Deductors: In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the IT Act which reads as under:
    • Where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues
  • For Tax payers: Non/ Late filing of TDS statements results into the TDS Credit not being available to the deductees. They, therefore, will not be able to claim the credit for tax already deducted from the payments made to them. Please note that TDS Certificates will not be available until the TDS Statements are duly filed.

3. Actions to be taken and  Procedure for filing of Nil TDS return/ declaration for non filing of TDS statement :

  • Please file the relevant TDS Statement without any further delay.
  • If you are not required to file the same, please submit a declaration for Non-filing on TRACES. For this purpose, you can login to TRACES, navigate to “Statements/ Payments” menu and submit details under “Declaration for Non-Filing of Statements  (as shown in the image below).“.

TDSCPC NIL

 

Issue TDS certificates after generating and downloading the same from TRACES. TDS Certificates downloaded only from TRACES Portal will be valid.

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26 responses to “NIL TDS – File Declaration for Non-filing of TDS statement on TRACES”

  1. BEGUM says:

    CAN WE DECLARE NIL STATEMENT OF Q1 AFTER Q3

  2. 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

  3. 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

  4. begum says:

    is it mandatory to declare nil in the traces?

  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. subhash says:

    we have received TDS exemption certificate U/S 197 WITH 3 % TDS DEDUCTED TOWRADS COMMISSION HOW TO FILLED IN TDS RETRUN

  9. RUCHITA says:

    Please tell me how to file NIL TDS return in TAX PRO.

  10. afsar says:

    i want to uplod nil return but i have lot of problem in dedectee

  11. Mahendra Makhija says:

    If declaration of nil tds is not filed, then there can be imposed a panelty?

  12. 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?

  13. 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 ]

  14. PERVEEZ says:

    SIR WE HAVE NO DEDUCTEE FOR THE 1ST QUARTER AND SECOND QUARTER FOR FY 2014-15 WHETHER WE HAVE SUBMIT NIL DECLARATION ONLINE

  15. 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?

  16. Vishnu says:

    you have to deposit tds as required that is 10% on interest amt and adjust the same in next f.y.2014-15, which u r depositing.

  17. 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?

  18. ca anuj k agarwal says:

    whether there is any penalty provisions for non submitting declaration. If not why a person would file such declaration?

  19. 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.

  20. 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

  21. 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?

  22. M.Selvapandian says:

    When there is no liability to deduct TDS, whether filing of declarations regarding non-filing can be made mandatory?

  23. 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.

  24. 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..

  25. pranav says:

    Provisions of tds in this case is not applicable. Read section 194A

  26. vikram says:

    Sir I paid interest in fy 2013/14 to financial co. But I fails to deduct tax at source I am a partner in partnersheep firm what can I do

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