TRACES introduced NIL TDS Statement/Declaration of TDS from the FY 2014-15. This is applicable for Deductors who did not deduct any tax during the relevant quarter.
What is the benefit of filing a Nil TDS Statement?
The benefit of this facility is that instead of filing nil TDS/TCS Statement for a particular quarter/period, one just needs to update the status to non-filing Statement. After updating of status, TDSCPC will not send any notice for non-filing of TDS Statement.
How does it help the Department?
As per income tax rules, nil eTDS statement is not mandatory due to which, the department is not able to find out the difference between the following two types of Deductors.
- Deductors required to file return but not filed.
- Deductors not required filing return.
After getting updating of status through this facility, department can get the details of willful defaulters.
What is the Procedure of filing Nil TDS Declaration for non-filing TDS statement?
The process is as follows:
1. Login through your register id at www.tdscpc.gov.in
2. Go to “Statement/Payments TAB after login >then declaration for Non filing of TDS statement (as shown in the picture below).
3. On click of declaration for Non filing of TDS statement link you will get screen as shown below.
- Select financial year.
- Select Quarter.
- Select statement type.
- Select reason for non filing of statement from drop down menu.
Also note following points:
1. Fields marked by asterisk (*) are mandatory.
2. ‘Specify the exact reason’ field will be mandatory if user selects ‘Any Other Reason’ in ‘Reason’ drop down.
3. If deductor has Permanently closed his business, he should contact the Assessing Officer to close his TAN.
4. User will not be able to declare a statement for a Financial Year, Quarter and Form Type for Non-Filing for the following cases:
- If user has already declared that statement for Non-Filing.
- If user has changed the filing status of that statement from Non-Filing to Filing.
- User has to agree to all the declarations before submitting the statement for Declaration for Non-Filing.
4. Click proceed button after selecting required data. In next screen, you have to give a declaration/certificate as shown in the picture given below.
5. After certificate, following message will be shown.
Filing Status for the statements selected by you has successfully changed. You will receive the details of the statements for which filing status has changed on your email.
6. Good thing of this facility is that you can change back this status from non-filing and can file return, if required at later stage or you have wrongly updated status for incorrect period. But change facility is available for only one time for a selected period. To change the status you have to go again through “Statement/Payments TAB after login > then declaration for non filing of TDS statement.
7. Statement selected earlier as non-filing can be updated by selecting the statement for a given period and click change filing status, and in next screen, you have to reconfirm your request by clicking the proceed button.
8. After adding first statement to non filing status, next time you will get screen as shown above and you can add other statement to non filing status through add statement link.
What happens if we changed non filing status from filing but didnt deducted income tax for that quarter. Will there be any penalty?