Are you a taxpayer who is required to file a TDS statement? Not yet filed? If not, then you may have come across a situation where you have received a CPC TDS reminder communication for non-filing of TDS Statement, which states that as per the records of the Centralized Processing Cell (TDS), you have filed TDS Statement for 24Q Quarter 1, FY 2018-19;
However, This TDS Statement has not been filed for Quarter 1 FY 2019-20; as of 15th October 2019. Period of non-filing and Form may differ from case to case.
As per the TDS Reconciliation Analysis and Correction Enabling System, CPC issue CPC (TDS) Reminder Communication to deductor in case of non-filing of TDS statement for a period which is corresponding the previous year period.
In our case deductor has filed for 24Q i.e. Salary return for the Quarter 1, Financial Year 2018-19, in subsequent Financial year the deductor has not filed 24Q for the Quarter 1, Financial Year 2019-20. In this case, CPC wants to know the reason for non-filing such return for the subsequent period.
The communication further states that, if you are not required to submit the relevant statement, you are requested to submit a declaration by taking appropriate action as suggested under “Action to be taken” in this communication.
Otherwise, your urgent attention is invited to relevant CBDT Circulars
and provisions of the Income Tax Act, mandating filing of TDS Statements and Issuance of TDS Certificates downloaded from TRACES.
Is it mandatory to file of TDS Statements?
Yes, please refer to the provisions of section 200(3) of the Income Tax Act, 1961 read with Rule 31A, which reads as follows:
Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of Section 200(3), is required to file TDS statement.
(a) Statement of deduction of tax under section 192 in Form No. 24Q [Salary Return];
(b) Statement of deduction of tax under sections 193 to 196D in-
- Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident
but not ordinarily resident; and
- Form No. 26Q in respect of all other deductees.
It is, therefore, advised to file the applicable TDS Statements at the earliest to comply with the above provisions.
Is there any implications for Non/ Late filing of TDS Statements?
(a) For deductors
In case of late filing of TDS Statements, a fee shall be levied on the deductor u/s 234E of the Act, which reads as under:
Where the taxpayer fails to furnish TDS statement in the stipulated time period as prescribed u/s 200(3) or proviso to section 206C(3), he shall be liable to pay by way of fee, a sum of Rs.200/- per day during which such failure continues.
(b) For the taxpayers
Non/ Late filing of TDS statements results in the TDS Credit not being available to the deductees.
They, therefore, will not be able to
claim the credit for tax already deducted from the payments made to them.
It is to be noted that TDS Certificates will not be available until the TDS Statements are duly furnished.
Actions to be taken in case of CPC TDS reminder communication for non-filing of TDS Statement:
Deductor needs to file the relevant TDS Statement immediately.
Deductor has to Issue TDS certificates to the deductee, which it needs to generate it only from the website of the TRACES.
In case, you are not required to file the same follow these step by step procedure to file such declaration in response to CPC TDS reminder communication for non-filing of TDS Statement.
Login to TRACES with your Unique ID and Password along with the TAN of the deductor and verification code. If verification is not visible clearly, you can refresh the image and enter Login.
This is your dashboard will look after login.
The taxpayer has to Select Declaration for Non-Filing from the drop-down menu from Statements.
Under the declaration for Non-filling of TDS statement you will have to provide the following details:
- Financial Year: Select the Financial Year for which you are submitting the declaration.
- Quarter: Select the Quarter(s) relevant for such a declaration. If you are not liable for the full financial year then you can select all the four quarters.
- Form Type: Select the relevant Form type for which declaration has been asked from the deductor.
- Reason: You will have to select the most appropriate reason from the drop-down menu for non-filing of TDS statement
– Not liable to deduct for the selected statement period.
– No payment made/ credited to the deductee.
– Temporarily Business closed.
– Permanent Business closed.
– Payment below the threshold to the deductee.
– Branch Shifted.
– Any other reason.
After you have filled all the relevant fields, click “Add Statement Details”.
Before proceeding further, you will have to agree with all the said terms which say:
I solemnly declare that the information mentioned above is correct to the best of my knowledge and belief and that:
– The reason provided for non-filing is correct.
_ I will not file any statement for the above details without updating the filing status on TRACES.
– The late filing fee will be applicable after the due date if I file the statement after updating the filing status on TRACES.
-I will not file any statement for the TAN if I have selected the reason for non-filing as “Permanent Business Closed” or “Branch Shifted”.
Click on I agree and proceed.
On the verification screen, you will see the auto-populated details which are taken from your profile.
In case of any mis-match you can update details in your profile section.
Click on Proceed.
After you have submitted your declaration, the filing status for the relevant statements selected under the declaration by you has been successfully changed.
Deductor will receive the details of the updated status for the statements on their registered email id.
You can also refer the video on CPC TDS communication.
Want to know about TDS on rent of property in excess of Rs.50,000/-. Click here.
Interested in knowing TDS on payments made to e-commerce participants Section 194-O.
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CA Devesh Thakur
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