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This article is applicable to all persons having the TAN No. (for TDS deduction purposes)

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 has been finding it diificult 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

Priya Sharma – priya@klaggarwal.com | KL Aggarwal Associates – www.klaggarwal.com

Republished with Amendments



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  1. Amruta says:

    Der can be two views regarding whether filing of declaration is mandatory or not
    1.you should file d declaratio
    Cz d words used in d article r SHALL furnish and second view is dat der r full chances of mandating this by provisions of chapter 17b.n its dam easy to file ds declaration.
    2.you should not file:
    Cz der is no penalty in sec 234e for non filing.n d word used is facility so its nt a mandate besides shiva sir rightly said dat ds is nt possible in case of person having a tan but who has not paid any challan.
    So in my view you should file it.

  2. amit says:

    An assessee has never filed TDS return
    either due to the fact
    1. Form 15G/H
    2. PAN No of transporters is available
    3. Certificate U/s 197

    Now should he file NIl Return or should he file for declaration ?
    also if declaration needs to be filed then since assessee has never filed tds return he can not create an account on traces.
    remedy or solution required please guide.

  3. pravin says:

    @TN Prabhu – pls dont remind aloud about binding force. Next year it could become a provision in Chp XVII-B !!

    @Manoj Sharma – you are right about citizens doing Govt’s job. Like with the cummulative 4 quarter reporting on TDS in 3CD, i wonder if people in IT offices are doing any work on tax payer’s money. To cop it all, the credit seen by assessees in their 26AS does not match those of the ITO’s login. I wonder whether there is an integrated database !?

  4. Manoj Sharma says:

    The more they try to ease the TDS Filing process, the more complicated & cumbersome it has become…Comparatively- 26QB process is more simple & payment & Return compliance is also easier. This process can be introduced in other sections also (optional for small deductees) as it is easier to understand & comply. Left to TRACES & ITD, citizens will be left doing the Government’s job for a good part of almost 11 days out of 31 in a month. Sad state of affairs!!

  5. Priya Sharma says:

    First , It needs to be understood that this declaration is a “Facility” ,when one needs not to file a nil return but just to update his/her status on TDSCPC site , after giving this declaration they will not send you notice for non-filing

  6. CA T N PRABHU says:

    This is very good. But whether it has a legal binding force is a question of doubt. If so, is there any time limit, what if delayed and what it not filed

  7. S.K.Mishra says:

    We want to know where any assessee was not furnish declaration for non filling of TDS return then can income tax department impose any penalty.

  8. Sriapda Raja A says:

    Dear Madam,we have filling regularly for 26q/24q & 27EQ but only one time we have filed 27Q, after no transaction made. is it necessary to declare every quarter for 27Q.

    Please guide


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July 2024