Tds return for non deducting employers

[DINESH MITTAL]

whether TDS return for the 'A' who are not deducting the tax on payments to transporters, who provide PAN, is mandatory or not. Also, whether NIL TDS return are required to be filled or not.

AI Summary

Employers Not Required to File NIL TDS Return for Transporters with PAN, but Advisable to Avoid Tax Issues. A query was raised regarding whether employers who do not deduct tax on payments to transporters, who provide their PAN, are required to file a TDS return, specifically a NIL return. The response indicated that filing a NIL statement is not mandatory. However, there is a conflict between the Income Tax Act, which requires filing a return when TDS is deducted, and the Income Tax Rules, which mandate filing for those with a TDS/TCS number. Despite the statutory interpretation suggesting no obligation for NIL returns, it is practically advisable to submit one to avoid potential issues with the tax department.