TDS NIL RETURN THROUGH TRACES
TRACES introduced a new system for NIL return filing of TDS from the FY 2014-15. This is applicable for deductor who did not deduct any tax during the relevant quarter. Therefore, did not file any statement for deduction of tax at source u/s 200(3) of the Income Tax Act’1961.
In this system, the deductor has to declare the reason of Non-filing of TDS return for the particular quarter. This, in turn, will help the deductor to be free from the notices which otherwise is sent to the deductor for Non-filing of TDS return for that quarter.
Is it a mandatory obligation to file NIL TDS Return?
It is not mandatory to file a NIL TDS Return.
What is a NIL Declaration of TDS Statement?
A NIL Declaration is basically a declaration for non-filing of TDS Statements. This declaration is made by those deductor who were not liable to deduct any tax during the relevant quarter.
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