Thursday, February 10, 2011

Create NIL e-TDS Return with NIL Challan Amount

Friends,

A question arises in every D.D.O's mind "Whether it is mandatory to file quarterly e-TDS return even if the data is NIL i.e. no tax have been deducted at source ?".  The answer of this question  is "NO". The filing of a NIL statement is not mandatory. 

As per section 200(3)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 quarterly statements for the period ending on the 30th June, the 30th September, the 31st December and the 31st March in each financial year and deliver or cause to be delivered to the prescribed income-tax authority73 or the person authorised by such authority such statement in such form74 and verified in such manner and setting forth such particulars and within such time as may be prescribed.]

So in this section in words given above suggests that if any tax deducted by the assessee, only than liability to file the e_TDS statement is arises.So in my view nil statement is not mandatory.

OFFICIAL COMMENT ON NIL ETDS/ETCS RETURN

FAQ on Form 24 answered on TIN-nsdl website is reproduced hereunder

"Q10. If there is no deduction in a particular quarter, should I file the NIL statement?

Ans.10 :The filing of a NIL statement is not mandatory. "

"Q11. In case of NIL statement in the fourth quarter, do I need to show salary details of deductees mentioned in first three quarters?

Ans.11 If there is no deduction in the fourth quarter but statements for all or any of the first three quarters were filed, statement for the fourth quarter giving only salary details (Annexure II) should be filed. "

Link to this answer on official website is given below

FILE Q4 24 Q RETURN EVEN NO DEDUCTION OF TAX IN Q4

Though nil return is not mandatory yet in cas e of form 24 q q4
-- if there is no deduction in forth quarter
-- but tax was deducted in any of the first three quarter
--than you should file form 24q ,keep challan detail and annex-I deductee detail blank and give detail in annex-II

WHAT IF DEPT HAS/WILL ISSUED A LETTER FOR NON FILLING

Income tax dept is issuing letters for non filling of etds/etcs returns.but dont worry as i it is clear that nil return is not mandatory ,we can reply them on a simple paper.

But if some wants to file NIL e-TDS return then NIL e-TDS return can be easily  prepared with(Download)
 (Don't Download any thing before free Registration on the TOP of this site and check your Inbox for clicking on activation link of Feed Burner.) Free etds software /Paid software .For this you have to create a NIL amount challan and leave blank the deductee details.and How to create Nil challan detail is given below.

However as you may know that now,we have to report non deduction of transporter entries in Etds statement .If  person has deposited a  challan related to section 194C then it is easy to enter transporter details in it ,However if no challan is there then he has to add a nil value challan in etds return u/s 194C for purely for transporter entries. Same is the case where firms has non deduction certificate under various section . In all such cases we have to fill a NIl value challan . Details to create NIL value challan is given below.

Field Value
Value
Serial No. (Column no. 401)
1
Section Code(Section Relevant to the Nature of Payment)
From Drop Down Menu
Amount Fields i.e. TDS,Surcharge,Education Cess,Interest and Others(Column no. 403 to 407)
0.00 (Zero)
Cheque / DD number (Column no 409)
Blank
Date on which tax deposited (Column no. 411) last day of respective quarter e.g. for quarter 4
31/03/2011
Transfer voucher / Challan serial No. (Column no. 412)
Blank
Whether TDS Deposited by Book Entry ?(Yes)/(No) (Column no.413)
Blank
Interest Rs
0.00 (Zero)
Others Rs
0.00 (Zero)



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