How to File Nil TDS Return

How to File Nil TDS Return: A Comprehensive Guide

Are you wondering about filing a Nil TDS return? Read on to discover the step-by-step process and FAQs answered!

Introduction to Nil TDS Return

When you are liable to deduct tax at source (TDS) but have not made any payments subject to TDS during a specific period, you need to file a Nil TDS return. Even if there were no transactions attracting TDS, it’s essential to fulfill your compliance requirements by submitting a Nil TDS return.

Step-by-Step Guide to File Nil TDS Return:

1. Log in to the TRACES Portal: Access the TRACES portal using your TAN credentials.
2. Navigate to “Declaration for Non-filing of TDS Statement”: Under the “Statements/Payments” tab, select “Declaration for Non-filing of TDS Statement.”
3. Fill in the Required Details: Provide necessary information such as TAN, Financial Year, Quarter, and Reason for Nil Return.
4. Submit the Declaration: Review the details entered and submit the declaration.
5. Generate Acknowledgment: After successful submission, an acknowledgment containing a unique token number will be generated.
6. Verification: Verify the declaration using DSC or EVC.
7. Receipt of Confirmation: Upon successful verification, a confirmation message will be displayed, indicating the submission of Nil TDS return.
8. Keep Records: Ensure to keep a copy of the acknowledgment for future reference.

Frequently Asked Questions (FAQs) about Nil TDS Return:

1. Is it mandatory to file a Nil TDS return?
   • Yes, if you have a Tax Deduction and Collection Account Number (TAN) and are liable to deduct TDS, filing a Nil TDS return is mandatory even if no transactions attract TDS.
2. Can I file Nil TDS return offline?
   • No, the Nil TDS return can only be filed online through the TRACES portal.
3. What happens if I fail to file a Nil TDS return?
   • Non-filing of a Nil TDS return may attract penalties and legal consequences. It’s essential to meet all compliance requirements to avoid any repercussions.
4. Can I revise a Nil TDS return?
   • No, once you have filed a Nil TDS return, there is no provision for revising it. Therefore, ensure all details are accurate before submission.
5. Do I need to pay any fees for filing a Nil TDS return?
   • No, filing a Nil TDS return does not attract any fees. However, late filing or non-compliance may lead to penalties.
6. Can I file a Nil TDS return for previous years?
   • Yes, you can file Nil TDS returns for previous financial years if you have not made any TDS transactions during those periods.
7. What is the due date for filing a Nil TDS return?
   • The due date for filing a Nil TDS return is the same as that for regular TDS returns, i.e., the 31st of July following the end of the financial year.
8. Is it necessary to obtain a Digital Signature Certificate (DSC) for filing a Nil TDS return?
   • While obtaining a DSC is not mandatory, it facilitates the online verification process and enhances the security of your filings.
9. Can I file a Nil TDS return for multiple quarters simultaneously?
   • Yes, you can file Nil TDS returns for multiple quarters in a single declaration, provided there are no transactions attracting TDS in any of the quarters.
10. How can I rectify errors in a filed Nil TDS return?
    • If you identify any errors in a filed Nil TDS return, you must contact the concerned tax authorities immediately to rectify the discrepancies.

Conclusion

Filing a Nil TDS return is a crucial aspect of tax compliance for entities with a TAN. By following the step-by-step guide and understanding the FAQs, you can ensure seamless filing and avoid any penalties or legal issues related to non-compliance.