Data in tds return when threshhold limit not crossed

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CA Chirag Uchat (Querist)
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18 November 2011 My question is .....
While filing quarterly TDS return, do I need to submit those parties details on which I have not deducted the TDS becasue threshhold limit not crossed ?
This question came to my mind while filing correction TDS retun through Skorydov software.
In this software, they have mentioned one option ubder the head " Reason for non deduction of TDS" that - "TDS not deducted because threshhold limit not crossed"

CA Navin Jain

CA Navin Jain (Expert)
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18 November 2011 I THINK, NOT NEED TO GIVEN THE DATA IN TDS RETURN WHEN THRESHOLD LIMIT NOT CROSSED, SINCE IF SEC IS NOT APPLICABLE WHY WE HAVE DISCLOSED THE INFORMATION, SAME IN THE CASE OF EMPLOYEE, ONE ORGANIZATION HAS THE HUGE NO. OF EMPLOYEES WHOSE INCOME IS BELOW THE TAXABLE INCOME, THEN WHY THAT ORGANIZATION NEED TO DISCLOSED THE INFO ABOUT THE EMPLOYEES WHOSE SALARY IS BELOW THE TAXABLE INCOME.

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CA Chirag Uchat

CA Chirag Uchat (Querist)
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18 November 2011 not satisfied

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Asha Kanta Sharma

Asha Kanta Sharma

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20 July 2024 Yes, you generally do not need to submit details of parties on which you have not deducted TDS because the threshold limit has not been crossed. This is a common scenario where TDS provisions under the Income Tax Act do not mandate deduction unless certain specified limits are exceeded.

When filing your quarterly TDS return, you typically include details of transactions where TDS has been deducted. Parties for whom TDS was not deducted due to the threshold limit not being crossed are not required to be reported in the TDS return. This is because no TDS liability arises in such cases as per the law.

Regarding the "Reason for non deduction of TDS" option in the Skorydov software, selecting "TDS not deducted because threshold limit not crossed" is appropriate in situations where TDS provisions do not apply due to the amounts being below the specified thresholds.

However, it's essential to ensure that your TDS return accurately reflects transactions where TDS has been deducted and deposited, and where it was required but not deducted (if any), due to other reasons such as non-availability of PAN, lower deduction or no deduction certificates, etc.

Always refer to the Income Tax Act, relevant TDS provisions, and guidelines issued by the Income Tax Department or consult with a tax professional if you have specific concerns or uncertainties about TDS filing requirements.