No TDS on interest income till 30 June: CBDT extends validity of forms

As per the order issued by CBDT, if a person has submitted valid forms (15G and 15H) to banks or any other financial institution for FY 2019-20 then these two forms will be valid up to 30 June 2020 for FY 2021 as well

  • Central Board of Direct Taxes (CBDT) has provided another relief to taxpayers; this time by extending the validity of forms 15G and 15H by three months to June 30 2020. The extension will prevent banks to deduct TDS on interest income of individuals, HUF or a trust.
  • Forms 15G and 15H are forms that one can submit to the authorities stating that one’s income does not qualify for a tax deduction and can avoid TDS on incomes like interest and rent. Form 15G is for residents of India under the age of 60, trusts or HUFs while 15H is for residents who are over 60.
  • As per the order issued by CBDT, if a person has submitted valid forms (15G and 15H) to banks or any other financial institution for FY 2019-20 then these two forms will be valid up to 30 June 2020 for FY 2021 as well.
  • The order also added that the payer who has not deducted TDS on the basis of aforementioned forms shall report such credits/payments in the statement for quarter ending 30 June in accordance with the provisions of the rule of the Income Tax Act, 1962.
  • The extension for submitting forms 15G and 15H comes in the wake of coronavirus pandemic that has disrupted normal working life in virtually every sector of the economy, including banks and financial institutions.
  • This could mean that some eligible people are not able to submit these forms and consequently being taxed even when there is no liability. The CBDT orders aims to prevent that from happening.
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Author: Admin Bankedge

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