It is better to submitt NIL return to avoide notice from NSDL for non filing of TDS return.
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there is no need to file nil tds return.but if you want you can file nil return also.the main purpose of tds return is to sumit the pan no. of deductees whose tax is deduted and deposited.if there is no tax deducted or deposited,need for filing return does not arise.altogether filing nil tds return is very simple.
In my opinion, no need to file Nil TDS return, if there is not TDS deduction and payments, but Quarter wise return should be compulsorily filed eventhough, no TDS deduction and payments for the respective quarterly period.
There is no such circular regarding non filing of NIL TDS Return, but penalty u/s 272A(2) for non filing TDS return is limited to amount of tax collected or deducted. Hence practically no need to file Nil TDS Return because penalty is NIL.
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