TDS

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sumit bhartia (Querist)
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09 January 2010 In my company TDS is deducted from salary of employees in March

as such we deposit TDS return for the Quarter March only

But my auditors are saying that why you have not deposiyted TDS return for the previous quarters

I said that no TDS was deducted as such no return was deposited

what does law says about depositing NIL salary TDS return

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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09 January 2010 As per rule 31A of the Income tax Rules,1962 read along with form 24 Q quarterly returns has to be filed. By implication ,if there is no tax deduction NIL return has to be filed quarter wise.

CA Manasa

CA Manasa (Expert)
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09 January 2010 Yes agree with Mr Chakrapani.Even though there is no tax deduction Nil return need to be filed.

Bhavesh

Bhavesh (Expert)
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10 January 2010 Even I was under the impression that filing of E-TDS returns is compulsory.

However the FAQs given for NSDL show a different picture.
It says that filing of NIL ETDS returns is not compulsory if there is no deduction in a particular quarter.

Find the link here
https://www.tin-nsdl.com/Form24QQ4.asp

M Prabhakar Menon

M Prabhakar Menon (Expert)
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10 January 2010 There is no need to file nil returns But in this case if TDS had to be deducted and it wasnt then you are at fault Postponing TDS to march due to any reason is not correct or prudent

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 January 2010 Nil Return not Mandatory

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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10 January 2010 Nil Return not Mandatory

vishnu prasad prabhu

vishnu prasad prabhu (Expert)
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11 January 2010 As per the provisions of it act there is no contravention of the provisions if tds is deducted in the month of march only.however this is applicable only in the case of salary not other payments.
secondly filing of nil return is not mandatory.Since there is a separate annexure in the 24q which shows the whole year salary and other income deails there is no problem if the returns of 3 qtrs are not filed.

Bhavesh

Bhavesh (Expert)
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11 January 2010 @ Mr. Vishnu Prasad.

I beg to differ.

As per sec 192, TDS is to be deducted on salary each time of payment at the average rate of income tax.

So the tax has to be calculated each month and tax has to be deducted each month.

However, in practice, the salary is deducted only towards the later months and not from April onwards.

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