Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

How to file Nil Return

Nil return can be divided into two categories:

1.  Nil eTDS return which have only Nil amount challan and no deductee details (We will refer it as a pure Nil eTDS return)

2.  Nil TDS return having Nil amount challan and having deductee details also with remarks tag “A ” , “B” ,”T” ,”Z”,”Y”

First type of return i.e. pure Nil eTDS returns has been dispensed with and cannot be filed on or after 01.10.2013 but second type return still can be filed even after 01.10.2013 with FVU 4.0.

The Codes shown above have specific purposes which has been described as under:

  • Write “A” if “lower deduction” or “no deduction” is on account of a certificate under section 197.
  • Write “B” if no deduction is on account of declaration under section 197A.
  • Write “T” if no deduction is on account of deductee being transporter. PAN of deductee is mandatory.[section 194C(6)]
  • Write “Z” if no deduction is on account of payment being notified under section 197A(1F).
  • Write “Y” if no deduction is on account of payment below threshold limit specified in the Income-tax Act, 1961.

So to create a Nil tds return after 01.10.2013 have two steps:

Step -1: Enter challan details 

  • create a Nil amount challan (Check How to create Nil amount challan here) as you have done previously or
  • Enter  any challan with amount deposited start date of financial year one year before the current financial year .You can enter challan deposited on or after 01.04.2012 for financial year 2013-14 (as per FVU 4.00 after 01.10.2013)

Step-2: Enter at least one deductee details

  • With any one tags code  A B T Z or Y  as describe above
  • A ,B & Z need certificate number also ,so that can be entered only if you have certificate number  issued by ITO TDS
  • Code-T is to be mentioned for payment made to transporter without deduction of tds under section 194C(6)
  • More important is Code Y ,which is not mandatory ,but can help us in creating Nil eTDS return. With Y TAG you can enter payment under any tds section where cut off amount has been defined and you have paid/credited amount less than cut off amount and no TDS has been deducted on it.

Note: Please note that while creating the eTDS return for a Given quarter you can enter deductee details from start of the financial year to end date of the given quarter. The same rule applies on deductee entries with above tags also. So in quarter -2 for FY: 2013-14, you can enter any entries dated 01.04.13 to 30.09.2013.


Procedure for filing TDS returns with insufficient deductee PAN

As per instructions issued by the Central Board of Direct Taxes (CBDT), it is mandatory for deductors to file TDS/TCS returns with a threshold limit of Permanent Account Number (PAN) of deductees. To facilitate deductors who face problem in filing TDS returns because of insufficiency of PAN of the deductees and also to accommodate the deductees who have intimated their PAN, the Income Tax Department (ITD) has specified the following procedure for filing TDS/TCS returns:

    Deductors can file a return containing deductee records which meets the specified threshold limit of PAN quoting, i.e., a deductor can file a return containing deductee details who have provided valid PAN. It can subsequently file a correction return with details of remaining deductees. E.g. as below:

  • Suppose a challan payment of Rs.1,00,000/- has been made for non-salary TDS against 100 deductees each with TDS of Rs.1,000/-. Under the existing procedure the deductor will have to quote at least 85 PAN, failing which his return will be rejected.
  • If there are only 50 deductees whose PAN is available and the deductor attempts to file a return with details of 100 deductees with PAN of only 50 deductees, the return will automatically be rejected at present.
  • However, if he files a return with challan amount of Rs. 1,00,000/- and with details of 50 deductees with PAN, with deductee total of Rs.50,000/-, the return will be accepted. It means the deductor can furnish the details relating to such deductees whose PANs are available.
  • The deductor can later file correction returns with other details of remaining deductees with the same challan details, i.e., the challan amount should be the amount deposited (in this case Rs. 1,00,000/-).
  • The return will be accepted so long as the TDS total of incremental deductees is less than or equal to the balance of Rs.50,000/-.

Generation of Text File and Validation of the same

      The procedure of generation and validation of text file for Correction Statement is similar to that of original return.

Submission of Correction Statement

The CD / floppy containing correction statement should be accompanied with the following documents:

  • Statement Statistics Report generated by FVU. In case of multiple batch correction statement, a separate ‘Statistics Report’ for each kind of batch within the multiple batch correction statement will be generated by the FVU. In such cases, deductor shall submit all ‘Statistics Reports’.
  • Form No. 27A
  • Copy of the provisional receipt of regular return.


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