TDS Return without deduction.

Hey Jain! Great questions about TDS returns when no TDS is deducted on salary below taxable limits. Here’s the clear answer:

1) Can an employer file TDS return or any statement against salary paid without deducting TDS?

• No, an employer is NOT required to file a TDS return if no TDS is deducted.

• TDS returns (like Form 24Q for salary) only report cases where TDS has been deducted.

• If the salary is below the taxable threshold (currently Rs. 2,50,000 for individuals below 60 years), then no TDS deduction is required and no TDS return filing is needed for that employee.

2) Are there any sections compelling employers to report non-taxable salary/pension?

• There is no provision in the Income Tax Act that mandates employers to report salary payments without TDS deduction.

• Reporting requirements apply only when TDS is deducted.

• Employers are expected to maintain proper records of salaries paid, but no submission of TDS statement is required if TDS is NIL.

Summary Table:

Additional notes:

• However, employers usually issue Form 16 (TDS certificate) only when TDS is deducted.

• Even if no TDS is deducted, salary details are reflected in Form 16 Part B issued by employer.

• For salaried employees, actual tax liability is computed during ITR filing by the employee.

Bottom line:
If the salary is below taxable limit and no TDS is deducted, the employer is not required to file any TDS return or statement to the Income Tax Department about those payments.