File Nil TDS Return.

The last date for filing the TDS Statements for the Second Quarter of FY 2014-15 is already over. There will be many deductors who did not deduct any tax during the relevant quarter and therefore did not file any statement for deduction of tax at source u/s 200(3) of the Income Tax Act’1961.

But do you know that for such deductors who have a TAN Number but have not filed the TDS statement as they did not deduct any tax during the relevant tax period, CPC (TDS) has started a functionality where the deductors can file a NIL Declaration i.e a declaration that the deductor did not deduct any tax during the relevant tax period and was subsequently not liable to file a tds statement.

Ques: What is a NIL Declaration of TDS Statement?

Ans: A NIL Declaration is basically a declaration for non-filing of TDS Statements for those deductors who were not liable to deduct any tax during the relevant quarter or have not deducted tax during any quarter and subsequently did not file a TDS Statement U/s 200(3) of the Income Tax Act’1961 for any quarter.

Ques: Is it mandatory to file a NIL Declaration?

Ans: As per Income Tax Act’1961 and the Income Tax Rules it is not mandatory file a NIL TDS Return.

Since filing NIL TDS Return was neither mandatory nor possible. The CPC (TDS) was having a problem distinguishing between:

1.    Deductors required to file return but not filed the TDS Return.

2.    Deductors not required to file return.

Therefore, In order to prove that the deductor was not required to file a TDS Return, it is advisable that the deductors should file A NIL Declaration of TDS Statement.

Ques: Where can I file a declaration for not filing a TDS Statement?

Ans: A Declaration for not filing the TDS Statement can filed by logging into the CPC (TDS) Website: www.tdscpc.gov.in.