TDS Return

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This query is : Resolved

CA. Pushkar Sharma (Querist)

25 December 2008 If i have TAN no., but no tds liability in any of the qtr. Is it mandatory to file NIL return of TDS. Please quote relevent section,rules, circular, whatever..........

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

25 December 2008 Yes, The NIL return is mandatory, if you don't have any TDS payment liability of not deducted TDS.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

25 December 2008 Legally there is no need to file Quarterly TDS Return /
Statement where no tax has been deducted at source.
NSDL is also of the view that it is not at all compulsory to
file NIL return, if deductor has not deducted any tax at
source or if there is no transaction at all for a particular
period.
But NSDL also states that it is upto the assessee whether
to keep a record in system or maintain a track with
Income Tax Department.
If for a quarter TDS return / statement are not filed then
the assessee receives a letter / notice from NSDL for nonfiling
of e-TDS return/statement.
NSDL's letter for non-filing of e-TDS return/statement
clearly mentions at the bottom that if the assesee has
already furnished or is not required to furnish TDS
return/statement then the letter is to be ignored.
But as NSDL is a person authorized by the income-tax
authority, its letter for non-filing of e-TDS
return/statement is considered to be a notice from the
Income-tax Department and looked upon very seriously.
The assesee who has not filed the return because of NIL
transactions replies to this letter stating that as there is
no transaction during the quarter the return/statement
has not been filed. This process is repeated everytime a
return is not filed because of NIL transactions. The other
option left before the assessee is to file a NIL return.

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

25 December 2008 However, in the following situation, a NIL return must be filed.
When there is a payment liable to TDS but, on which no tax has been deducted at source as deductee has produced a certificate of NIL tds rate from assessing officer.