The Income Tax Department has allowed individuals to submit Form 15G and 15H for the current fiscal after June 30 for claiming exemption from TDS on interest income to mitigate the hardship of people amid the COVID-19 crisis.
The Income Tax Department on Saturday extended the deadline for individuals to submit forms 15G and 15H for the current fiscal by three months to claim exemption from Tax Deducted at Source (TDS) on interest income amid the COVID-19 crisis.
The forms are filed by people whose income is below the taxable threshold. They are usually submitted by taxpayers to banks and financial institutions in April.
The Central Board of Direct Taxes (CBDT) said the 15G and 15H forms submitted in last fiscal year will remain valid till June 30 as the coronavirus pandemic has caused severe disruption in the normal working of almost all sectors of the economy, including banks and other institutions.
It said that in such a situation, some individuals may not be able to submit the forms timely and this will result in deduction of TDS even when there is no tax liability.
“In case if a person has submitted valid forms 15G and 15H to the banks or other institutions for FY 2019-20, then these form 15G and 15H will be valid up to June 30 for FY 2020-21 also.”
While Form 15H is submitted by senior citizens, 15G can be filed by an individual whose taxable income is less than the exemption threshold.
Besides, the CBDT said that assesses who have filed an application for issue of a certificate for a lower rate or nil deduction of TDS or Tax Collected at Source (TCS) in 2019-20 fiscal to the I-T Department will now have to intimate the assessing officer about the pendency of issue such a certificate via e-mail.
“The assessing officers have been directed to dispose of the applications through a liberal procedure by April 27 so that taxpayers may not have to pay extra tax which may cause liquidity issues to them,” said the CBDT.