28 October 2013
Dear Experts One of my client obtain TAN Number in the year 2012-13 and there is no transactions during the said period. Now the Income tax department sent Intimation of non-filing of e-TDS Quarterly Returns for the said period. My query is that whether the TAN obtainer file NIL Returns because no transaction for the period. Till today party will not file TDS returns. Please give me expert opinion whether is attracts penalty U/s 234E if attracts how much penalty levy u/s 234E. Thanks in advance
28 October 2013
Bottom of the Intimation letter Note:-(1) Penalty of Rs.100/- per day and subject to the maximum of tax deductible. It means whether the Party liable to pay Penalty U/s 234E
28 October 2013
Penalty will apply only when you require to file the return but you not filed and defaulted, but there is no requirement of return no question of penalty. give the reply with clearly stating that you don't have any deduction during those period.
You may please refer to sub-section 3 of the Section 200 of the Income tax Act:
Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed] and deliver or cause to be delivered to the prescribed income-tax authority15 or the person authorised by such authority such statement in such form16 and verified in such manner and setting forth such particulars and within such time as may be prescribed.
If you read the above, the pre-condition to filing of TDS return is deduction of taxes. Thus, in case no TDS was required to be deducted, no TDS return is required. You can reply to the notice stating the same along with a copy of the financial statement for the past year to reflect the payments made by you during the said period. This should suffice.
29 October 2013
U/s.234E,If you delay or forget to file your e-TDS Statement, fees of Rs. 200 per day will be levied on the deductor, as long as TDS Statement is not filed.
HOwever The levied amount of fee is not supposed to exceed the TDS deductibles. . . Hence as in your case tds deducted is zero, so your case levy of fee u/s 234E also will be zero,,no fee will be levied under 234E . . please note yes PURE NIL TDS RETURN FILING IS NOT REQUIRED,but note that if there is deductee details and nil challan TDS return required to file other wise penalty 271H may be imposed(effective 01.07.2012)
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