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.

[Surender Gupta]

The filing of a NIL statement is not mandatory.

[Surender Gupta]

My, above views are based on earlier provisions and NSDL website. But if you read the bare provisions carefully, there is a conflict in the provisions of Act and Rules. Sub Section (3) of Section 200 of the Income Tax Act, 1961, makes it mandatory to file return where TDS has been deducted. Whereas rule 31A of the Income Tax Rules, 1962 (see updated rules under Income Tax Section on this portal) after amendment makes it mandatory for each person having TDS / TCS number allotted. If you ask for strict statutory interpretation, the provisions of Rules can not override the provisions of Act. Therefore, you are not liable to NIL return. On the contrary, practically, department may put you in trouble under provisions of Rule 31 therefore, practically it is advisable that you should submit NIL return.

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.