Last week, the State Bank of India (SBI) re-informed its customers via Twitter on the extension of the deadline to submit Form 15G and Form 15H for the financial year 2020-21 to 30 June. It also informed that account holders of SBI can submit the forms online using its internet banking facility or over the YONO app.
Note that the Central Board of Direct Taxes (CBDT) has extended the validity of Form 15G/Form 15H till 30 June 2020 due to hardships faced by individuals to visit bank branches amid the nationwide lockdown to curb the spread of COVID-19. This means that if a person had submitted valid Form 15G or 15H to their banks or other institutions for the previous year, that is the financial year 2019-20, then these forms would be considered valid for FY 2020-21 till 30 June.
In light of the current situation, the Central Board of Direct Taxes (CBDT), has decided to extend the validity of Form 15G and 15H submitted for Financial Year 2019-20, till 30th June 2020.#SBI #Announcement #CBDT #Depositors pic.twitter.com/cd9x7ciUqU— State Bank of India (@TheOfficialSBI) April 16, 2020
What is Form 15G and Form 15H?
Banks or other financial institutions are required to deduct tax on the account holder's behalf on interest earned on a fixed deposit (FD) or any kind of deposit including savings account when income interest exceeds the taxable limit.
TDS (tax deducted at source) is exempt up to the extent of Rs 40,000 interest income earned in 2020-21. But if your total income is below the taxable limit, you can ask the bank not to deduct any TDS on your interest income by submitting Form 15G and 15H.
Form 15G is for individuals aged less than 60 years and Form 15H is for senior citizens.
These forms are valid only for one financial year and are generally required to be submitted at the start of a financial year to avoid any delay in submission and consequentially deduction in taxes.
However, due to the lockdown situation, the validity of these forms submitted for the previous year have been extended for the current year till 30 June. This means that those who wish to submit them at the bank's branch can do so at the start of July or if your bank does not have an online facility to make the submission during the lockdown.
If you are an SBI account holder, you can submit form 15H or form 15G online.
How To Submit Form 15H or 15G Online?
- Login in to your internet banking account www.onlinesbi.com.
- Under 'e-services', select 'Submit 15G/H' option.
- Select Form 15G if the account holder is less than 60 years old or Form 15H if senior citizen.
- Select the Customer Information File (CIF) No.
- Click on Submit.
- It should lead you to a page with a pre-filled form. Complete any missing information.
- Confirm details with an OTP sent to your registered mobile number.