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Tds return is it necessary to file nil return

Viral (articel) (32 Points)

08 February 2013

IS IT NECESSARY TO FILE TDS RETURN IF THERE IS A NIL RETURN AND IF NOT FILED WHAT ARE THE CONSEQUENSES

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8 Replies

CA Prashant Gupta (DGM (F & A)) (14068 Points)
Replied 08 February 2013

NIL TDS return is not compulsory

no penatly

2 Like

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CA Gaurav Ajit Potdar (Chartered Accountant) (846 Points)
Replied 08 February 2013

Agree with CA prashant Gupta NIL TDS return not compulsory

Kulwant Singh Khalsa (CA STUDENT) (105 Points)
Replied 08 February 2013

As per my view,

as per section 206 person deducting the tax is required to furnish return and going by this section you are not required to furnish the quarterly return.

Nikhil Kaushik (Fellow CA) (86157 Points)
Replied 09 February 2013

Dear Viral,

As some of the members have correctly pointed out, filing of TDS return in case of NIL deduction is not compulsory. The correct section to arrive at this opinion is 200(3) of the income tax act which is as follows:

"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 authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed"

As you may deduce from the above, the filing of TDS return is only a consequence of deduction at taxes at source and thus cannot be done in absence of any transaction of tax deduction. However, inadvertent or willful failure in deduction of taxes shall preclude the application of 200(3).

giridharinayak (Staff) (33 Points)
Replied 09 February 2013

Unless file the nil return should ready to reply the letter for non filing the return (the letter should receive from Income Tax (TDS) office)

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K V ASHOK (TDS Consultant) (74 Points)
Replied 09 February 2013

Though it is not compulsory, but you will receive a notice for Non Filing of Return.

CA Nazia Shaikh (student) (174 Points)
Replied 07 October 2013

But what if an assessee is an Individual and has a TAN number but has not deducted any TDS for a particular quarter. Is it compulsory to file NIL TDS return ?

When is it compulsory for the assessee (Individual)to file a NIL tds return?

The Rpu version of 3.7 for quarter 2 of FY 2013-14 does not allow a TDS RETURN to be filed for Nil transaction , Nil Return. Errors come during validation. The error sheet shows " Nil challan with no deductee records is not allowed." How do I go about? Should I skip filing the return or will I get notice?