Is there any penalty for nil TDS return?

As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. 200 per day is not penalty but it is a late filing fee.

Is it mandatory to file income tax return if TDS is deducted?

Irrespective of whether your employer has deducted tax at source (TDS) on your salary or you have paid tax on your own, you should file your income tax return (ITR) if you fit certain criteria. Gross total income is the income you earn without factoring in exemption and deductions.

How can I file nil TDS return on income tax?

Steps of Nil Return filing of TDS in a summary Step-1 Login to TRACES Deductor login with the User ID, Password and TAN of the deductor. Step-4 Then, give the reason for non-filing. Next, click on “Add Statement details”. Step-5 Acknowledge the declaration, NIL return will be successfully filed.

What if my employer has not deducted TDS?

When your employer has not paid the TDS to the income tax department, the TDS would not be available against your PAN in your Form 26AS. If you take the tax credit for this amount, you will receive a notice from the income tax department for the mismatch in the TDS claimed and taxes paid.

What is the penalty for not filing nil return?

Failure to file NIL return under Income Tax Act for a company would lead to a penalty of Rs. 5000, if the return is filed before 31st December and a penalty of Rs. 10,000 if the return is filed after 31st December.

Is it mandatory to file 24Q?

An employer has to file TDS return for the tax deducted under section 192 on the salaries of employees. The TDS return is filed in the Form 24Q . Form 24Q is required to be filed quarterly.

Who has to deduct TDS?

When should TDS be deducted and by whom? Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payment. But no TDS has to deducted if the person making the payment is an individual or HUF whose books are not required to be audited.

Is nil return mandatory?

Filing of a NIL income tax return is not mandatory if your total income is below the basic exemption limit as per the income tax act. But it is always recommended that you file an ITR if there is any source of income earned by you in a financial year.

Who is liable for TDS return?

As per the Income Tax Act, every payer/deductor who deducts/collects TDS/TCS has to be filing their TDS or TCS return. The following deductors are required to file TDS/TCS return quarterly if they have deducted any TDS from the payment made. It is mandatory to file quarterly TDS/TCS return within prescribed due dates.