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.
Forms 15G and 15H are filed by persons whose incomes are below the taxable threshold, to seek exemption from TDS on interest income.
These forms are usually submitted by taxpayers to banks and financial institutions in April.
In an order, the Central Board of Direct Taxes (CBDT) said the 15G and 15H forms submitted last fiscal will remain valid till June 30, 2020, since the Covid-19 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 would result in deduction of TDS even when there is no tax liability.
To "mitigate the genuine hardship" of such persons, the CBDT said: "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, 2020, 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.
In a separate order, the CBDT said the assessees who have filed application for issue of certificate for lower rate/nil deduction/collection of Tax Deducted at Source (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 Officer shall dispose off the applications by April 27, 2020, and communicate to the applicant regarding the issuance/rejection of certificate vide email," the CBDT said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
