How to file Nil TDS Return

Nil return can be divided into two categories:

1.  Nil eTDS return which have only Nil amount challan and no deductee details (We will refer it as a pure Nil eTDS return)

2.  Nil TDS return having Nil amount challan and having deductee details also with remarks tag “A ” , “B” ,”T” ,”Z”,”Y”

First type of return i.e. pure Nil eTDS returns has been dispensed with and cannot be filed on or after 01.10.2013 but second type return still can be filed even after 01.10.2013 with FVU 4.0.

The Codes shown above have specific purposes which has been described as under:

  • Write “A” if “lower deduction” or “no deduction” is on account of a certificate under section 197.
  • Write “B” if no deduction is on account of declaration under section 197A.
  • Write “T” if no deduction is on account of deductee being transporter. PAN of deductee is mandatory.[section 194C(6)]
  • Write “Z” if no deduction is on account of payment being notified under section 197A(1F).
  • Write “Y” if no deduction is on account of payment below threshold limit specified in the Income-tax Act, 1961.

So to create a Nil tds return after 01.10.2013 have two steps:

Step -1: Enter challan details 

  • create a Nil amount challan (Check How to create Nil amount challan here) as you have done previously or
  • Enter  any challan with amount deposited start date of financial year one year before the current financial year .You can enter challan deposited on or after 01.04.2012 for financial year 2013-14 (as per FVU 4.00 after 01.10.2013)

Step-2: Enter at least one deductee details

  • With any one tags code  A B T Z or Y  as describe above
  • A ,B & Z need certificate number also ,so that can be entered only if you have certificate number  issued by ITO TDS
  • Code-T is to be mentioned for payment made to transporter without deduction of tds under section 194C(6)
  • More important is Code Y ,which is not mandatory ,but can help us in creating Nil eTDS return. With Y TAG you can enter payment under any tds section where cut off amount has been defined and you have paid/credited amount less than cut off amount and no TDS has been deducted on it.

Note: Please note that while creating the eTDS return for a Given quarter you can enter deductee details from start of the financial year to end date of the given quarter. The same rule applies on deductee entries with above tags also. So in quarter -2 for FY: 2013-14, you can enter any entries dated 01.04.13 to 30.09.2013.

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