How to File a NIL TDS Return in Income Tax on TDS CPC Portal

A NIL TDS return is filed when a business has not deducted any tax at source (TDS) during a specific period. It’s important to file this return to maintain compliance with tax laws, avoid penalties, and keep a clean tax record. Here’s a step-by-step guide on how to file a NIL TDS return:

Step-by-Step Guide

Access the TRACES Portal: Go to the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website and log in using your credentials.
Navigate to the Declaration Page: After logging in, go to the “Statement/Payments” tab and find the “Declaration for Non-Filing of TDS statement” page.
Enter Required Details: Fill in the necessary information, including:
- Financial Year
- Quarter
- Form Type
- Reason for non-filing of the return
Add Statement Details: Click on the “Add Statement Details” option to provide further information about the NIL TDS return.
Select Appropriate Options: Follow the instructions on the page and choose the relevant options as needed.
Check the Declaration Box: Confirm the declaration by checking the box provided.
Review and Submit: Carefully review all the information you’ve entered to ensure accuracy. Once you’re satisfied, complete the transaction to submit the NIL TDS return.
Confirmation Email: You will receive a confirmation email at the deductor’s registered email address once the NIL TDS return is successfully filed.

Important Notes:

Even if you have no TDS to deduct, filing a NIL TDS return can help to comply with tax regulations.
Failure to file a NIL TDS return can result in penalties and affect your business’s tax record.
Keep a copy of the confirmation email for your records.

By following these steps, you can easily file your NIL TDS return and stay compliant with tax laws.