25 December 2008
If i have TAN no., but no tds liability in any of the qtr. Is it mandatory to file NIL return of TDS. Please quote relevent section,rules, circular, whatever..........
25 December 2008
Legally there is no need to file Quarterly TDS Return / Statement where no tax has been deducted at source. NSDL is also of the view that it is not at all compulsory to file NIL return, if deductor has not deducted any tax at source or if there is no transaction at all for a particular period. But 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 authorized 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.
25 December 2008
However, in the following situation, a NIL return must be filed. When there is a payment liable to TDS but, on which no tax has been deducted at source as deductee has produced a certificate of NIL tds rate from assessing officer.
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