Answer

ITR

Notice for a TDS statement that was not required

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  1. Facts

    If there was no deduction in a quarter, no statement is needed. You can tell TRACES by filing a declaration for non-filing of statement for that quarter and form.

  2. Provisions and law

    • Sec 200(3), Income-tax Act 1961 (now Sec 397(3)(b), Income-tax Act 2025)Deductor must file quarterly TDS statements and may file correction statements
    • Sec 271H, Income-tax Act 1961 (now Sec 461, Income-tax Act 2025)Penalty of ₹10,000 to ₹1 lakh for not filing or filing an incorrect TDS statement

  3. Analysis

    The declaration records the reason, for example no payments above the threshold or no deductions. Example: a small firm with a TAN made no contractor or professional payments in Q2 FY 2025-26 and got a reminder for Form 26Q. Filing the declaration on TRACES stops further reminders. Keep a short note of why no TDS was due.

  4. Conclusion

    1. Confirm there was no deduction in that quarter
    2. Log in to TRACES as deductor
    3. File the declaration for non-filing for the quarter and form
    4. Keep a screenshot or acknowledgement

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TDS default, Sec 200A / 201 (now 399 / 398)

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