Tds nil return

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Rajeev Bhardwaj (Querist)
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14 September 2011 WE HAVE RECEIVED NOTICES FROM INCOME TAX DEPARTMENT FOR NON FILING OF TDS NIL RETURNS FOR THE FINANCIAL YEAR 2010-2011 IN CASE OF INDIVIDUAL DEDUCTORS.
IS IT MANDATORY TO FILE NIL TDS RETURN IF NO TAX HAS BEEN DEDUCTED DURING THE FINANCIAL YEAR 2010-2011?

IN CASE WE FILE LATE TDS NIL RETURN WHETHER ANY PENALTY IS IMPOSABLE OR NOT?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 September 2011 Filing of NIL TDS return is not mandatory except in case of last quarter for Form 24Q.

For late filing of TDS return Sec. 272A(2) prescribes a penalty of Rs. 100/- for every day of default. However the penalty cannot exceed the tds amount. Hence, NIL TDS returns can be filed later also without any penalty.

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Pragnesh

Pragnesh (Expert)
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14 September 2011 Legally there is no need to file Quarterly TDS Return / Statement where no tax has been deducted at source but i believe in one expert opioin pls. gothrough the same.

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 uthorized 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.
NSDL/Income-tax Department should clarify the above issue so as to avoid unnecessary confusion with regards to NIL Returns and hence avoiding such replies as they serve no purpose and unnecessarily increase the
administrative burden of both, the assessee and the Department as well.

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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14 September 2011 Yes, Agreed With Expert. But Whenever You ask to file NIL TDS return by AO then You Must file return.Since No Where Written That NIL TDS Return Need not to file but as no penalty and interest arise so we prefer not to file tds return.

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