Avoid Notice from Department for Non-filing of TDS Return: As per Income Tax Act under section 200(3), 1961, every individual shall file a quarterly TDS return if the person is responsible for deduction of tax. However, no TDS return is ordered to be filed if TDS is not obligated to be deducted during that quarter of the financial year.
Due to this reason, the Income Tax Department has been noticing it challenging to distinguish between below types of deductors: –
- Deductors who are obligated to file TDS return and have not filed.
- Deductors who are not obligated to file TDS return due to NIL TDS.
So, for filing a declaration of non-filing of TDS statement, Department has introduced new functionality in the TRACES, which began from Financial Year 2013-14 onward. This functionality has been originated way back in 2013. However, many assessees are still not informed of this and skip TDS return without filing any declaration, which leads them to show-cause or intimation notice from the Department for non-filing of TDS return.
- Step By Step Model to File Declaration of Non-Filing of TDS Statement
- One can select any one of the Following Reason
- Step By Step Model to Revert Declaration of Non-Filing of TDS Statement
Step By Step Model to File Declaration of Non-Filing of TDS Statement
- First, login into Traces
- Select the ‘Declaration for Non-filing of Statement’ option under the ‘Statements/Payments’ section.
- Click on ‘Add Statements’
The page will also show all the declaration that was before filed for Non-filing of statement.
Add all the necessary details for the ‘Non-filing of Statement’.
Select the financial year, form, quarter and appropriate reason for the declaration.
One can select any one of the Following Reason
- Not liable to deduct for the chosen statement period – When one is not obligated to deduct any TDS under India’s Income Tax Act 1961.
- Credited to Deductee/No payment made – When credited to the deductee or no payment has been made
- Temporarily closed business– When the business is momentarily sealed
- Permanently closed business – When the business is permanently sealed
- Payment beneath the threshold to Deductee – When the payment credited or made is beneath the threshold limit
- Branch shifted – If the branch is shifted
- Any other reason – One is needed to register the reason (apart from the reason which is not available above) if one preferred this option.
One can also register multiple declarations at the same time by clicking on the option of ‘Add Statement Details’.
- Click on ‘Proceed’
- Click on ‘I Agree’
- Click on ‘Proceed’
A Message of Confirmation is Displayed for Non-filing of the Statement
Traces also implement functionality to revert the declaration of Non-filing of statements. This is needed if the user desires to file a TDS statement for which a declaration of Non-filing has already been made. Also, once the user reverts the status of declaration for that period statement, they cannot re-file declaration for Non-filing of Statement.
Step By Step Model to Revert Declaration of Non-Filing of TDS Statement
- Step 1 – Select the specific statement that you wish to change the Non-filing status.
- Step 2 – Click on the option ‘Change Filing Status’ and select ‘Proceed’.
- Step 3 – The subsequent screens show the change in status from Non-Filing to Filing.
Note: – One cannot revert the status of declaration if the person opts ‘Branch shifted’ or ‘Permanently business closed’ as the reason for Non-filing of statement.