NEW DELHI: The government has extended till June 30 the validity of forms 15G and 15H that individuals submit to banks to claim exemption from Tax Deducted at Source (TDS) on interest income. The move is intended at “mitigating genuine hardships” of small taxpayers and senior citizens. “In case if a person has submitted valid forms 15G and 15H to the banks or other institutions for FY 2019-20, then these forms will be valid up to June 30, 2020, for FY 2020-21 also,” CBDT said. Normally, forms 15G and 15H are filed by persons whose incomes are below the taxable threshold, to seek exemption from TDS on interest income.
While form 15H is submitted by senior citizens, 15G can be filed by an individual whose taxable income is less than the exemption threshold. Forms 15G and 15H are usually submitted by taxpayers to banks and financial institutions in April, but due to the lockdown, many may not be able to submit the forms in April this year. Hence, the validity was extended, so that TDS deduction even when there is no tax liability, would not happen. Separately, the CBDT said the assessees who have filed application for issue of certificate for lower rate/nil deduction/ collection of TDS or Tax Collected at Source in FY20 to the I-T department will now have to intimate the assessing officer about the pendency of the same via email.
“The assessing officer shall dispose off the applications by April 27, and communicate to the applicant regarding the issuance/rejection of certificate vide email.” The government on Friday also extended the validity of e-way bills and deferred the application of restricted 10 per cent input tax credit under GST, giving relief to the industry dealing with supply and cash flow issues amid the lockdown.