What is Nil Challan?
NIL CHALLAN is Challan with “0” Zero amount. If you have not deducted any TDS and wants to file TDS return, in this case you can use NIL CHALLAN to file NIL TDS return.
NIL TDS Return is with no deductions in deduction details and no challans (NIL CHALLAN Indication).
Here is a step-by-step guide on how to create NIL Challan.
Login to Cleartds.com, Add new deductor or work on existing previous deductor. Go to “Challans” (Master list of Challans).
You can add the Nil Challan by
*Entering the last date of the quarter as the Challan date
*Selecting the “Nil Challan” field
Remember do not add TDS amount.
Go to TDS returns and Create new return or you can work on existing return
Select “Challans”, click on “Select challan” under More options next to “Save challans”.
Select the “Select Challans” of NIL CHALLAN and “Submit Challans”, that’s it done.
Please note that the department does not allow nil challans without specifying tax deductions anymore. You will need to specify some tax deductions associated with the challan. Also, since these deductions will be for zero TDS amount, you will have to select a Reason for Lower Deduction
in the tax deduction. Otherwise, the FVU file won’t be validated by the department’s FVU utility, and TIN-NSDL won’t accept it.