The government has extended the validity of forms 15G and 15H that the assessees submit to banks to claim exemption from Tax Deducted at Source (TDS) on interest income till June 30. To mitigate the hardships of taxpayers, the CBDT issues orders u/s 119 of IT Act, 1961.
Income Tax Department Allows More Time To File TDS Exemption Forms
Mostly 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 the validity was extended, many may not be able to submit the forms in April this year.
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
“If the assessee has not submitted valid forms 15G and 15H to the banks or other institutions for FY 2020-21, then FY 2019-20 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.