No Needs to file "Nil" e-TDS/TCS Return w.e.f. 01.10.2013

With effect from 01.10.2013 new version of FVU i.e. 4.00 is published by the TIN-NSDL in place of FVU 3.7 with latest new key features. The latest FVU Ver. 4.00 contains "NIL" TDS/TCS Return but while generating validation through FVU Ver. 4.00, TDS/TCS statement can not be filed without quoting any valid Challan or deductee row. It means that NIL TDS Return no needs to submit TDS/TCS Return and thus cpc has also released important instructions on 07.10.2013 in the interest of deductors about submission of TDS/TCS return which is as under:

Dear Deductor,

You are the esteemed stakeholder of CPC (TDS). As the due date of filing of quarterly TDS statement for second quarter of Fin. Year 2013-14 is approaching fast, you are advised to file TDS statement well before due date (15th October for Non-Government deductors and 31st October for Government deductors). You are requested to make note of the following facts before filing the quarterly TDS statement:

1. Correct Reporting: Cancellation of TDS statement and deductee row is no longer permissible. Accordingly, it is very important to report correct and valid particulars (TAN of the deductor, Category (Government / Non-Government) of the deductor, PAN of the deductees and other particulars of deduction of tax) in the quarterly TDS statement.
2. Quote correct and valid lower rate TDS certificate in TDS statement wherever the TDS has been deducted at lower / zero rate on the basis of certificate issued by the Assessing Officer.
3. Last provisional receipt number to be quoted in regular TDS / TCS statements: While filing new regular (original) TDS statement, it is mandatory to quote the last accepted provisional receipt number of the regular quarterly TDS / TCS statement of any form type.
4. TDS statement cannot be filed without quoting any valid challan and deductee row
5. Late filing fee, being statutory in nature, cannot be waived
6. Download PAN Master from TRACES and use the same to file new statement to avoid quoting of incorrect and invalid PAN.
7. Validate PAN and name of fresh deductees from TRACES before quoting it in TDS statement.
8. Download TDS certificate (Form16A) from TRACES (w w w . tdscpc . gov . in) bearing unique TDS certificate number and issue to the taxpayers within due date.
9. File correction statements promptly in case of incomplete and incorrect reporting.
10. Download the justification report to know the details of TDS defaults, if any, on processing of TDS statement.
11. Do view your Dashboard regularly to know about your TDS performance.
12. Government deductors should obtain BIN (Book Identification Number) from their Accounts Officer (AIN holder) in time and quote the same correctly in TDS statement.

It is Mandatory to file “NIL” TDS Return(s) with effect from 1st April 2011
1. As per Sub-Section 6 of Section 194C of Income Tax Act, 1961, TDS is not required to be deducted on payments made to Transporter(S) if Permanent Account Number (PAN) is provided by the transporter to the deductor.

2. Further as per Section 197 of Income Tax Act, 1961, the Assessing Officer can issue a NIL (rate) deduction certificate(s) to parties under specified section(s) on submission of application in Form 13 with prescribed details. If such parties submit the "NIL" (rate) deduction certificate to deductor, the deductor is not required to deduct TDS from such parties.

3. Further if the amount paid by the deductor to the party(ies) is less than the threshold (ceiling) amount referred to in respective section(s), then there is no requirement to deduct tax (TDS) by the deductor from such party(ies).
(For example : Section 194C stipulates a threshold limit of single payment of Rs.30,000/- and aggregate payment of Rs.75,000/- during a financial year. In respect of Section 194J the threshold limit is Rs.30,000/-)

In all the above cases tax deduction (TDS) is NIL.Pursuant to Sub-section 3 of Section 200 of Income Tax Act, 1961, statement of deduction of tax (TDS return) is required to be filed where tax (TDS) has been deducted. It means that if no tax (TDS) is deducted, then no need to file the return.

This situation has been altered with effect from 1st April 2011. The Income Tax Rules 31A has been amended by the department to incorporate first two type of transactions (as specified above) in the quarterly returns. This is with effect from 1st April 2011.