Form 15H and 15G submitted for claiming nil tax or TDS will be valid up to 30 June 2020. A taxpayer who has submitted Form 15H or Form 15G to banks, financial institutions and so on will be entitled to nil deduction of tax (TDS) for interest income up to 30 June 2020. The Central Board of Direct Taxes (CBDT) extends the validity of the forms given the disruption caused by the spread of COVID-19.
Form 15G is submitted by a resident individual (below 60 years of age) whose annual income is below the taxable limit of Rs 2.5 lakh. Form 15H is submitted by senior citizens (60 years and above in age) whose tax payable is estimated to be nil for a financial year.
Taxpayers have to estimate their income or tax liability at the beginning of the financial year and submit the Form 15G and Form 15H, respectively. The submission of these forms in the first week of April ensures no deduction of tax or TDS on their incomes paid by banks and other institutions.
The social distancing measures and the lockdown makes it difficult for taxpayers to submit the forms on time. In the absence of timely submission, taxpayers may have to suffer TDS on their incomes from fixed deposits, debentures or bonds. Hence, the Government has extended the time limit of the existing forms submitted for FY 2019-20 until 30 June 2020.
Taxpayers can now submit the Form 15G and Form 15H in the first week of July 2020.
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I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.