Form 15G, 15H Validity Extended To Avoid TDS On Late Submission For FY21

On Saturday, the Central Board of Direct Taxes (CBDT) notified on that it is allowing Form 15G or Form 15H submitted by taxpayers for the financial year 2019-20 to remain valid till 30 June 2020 for FY 2020-21.

Through its twitter handle, CBDT posted an order dated 3 April that "In case if a person had submitted valid Form 15G and Form 15H to the banks or other institutions for F.Y. 2019-20, then these Form 15G and Form 15 H will be valid up to 30.06.2020 for FY 2020-21 also. It is reiterated that the payer who has not deducted tax on the basis of the said Form 15G and Form 15H shall require to report details of such payments/credit in the TDS statement for the quarter ending 30.06.2020 in accordance with the provisions of the rule 31A (4)(vii) of the Income-tax Rules, of the Income-tax Rules, 1962."

The extension of the validity of these forms comes as a relief, especially to senior citizens, who are unable to visit banks amid the 21-day lockdown for submission. Taxpayers are generally required to submit them in the first week of April of every financial year to avoid TDS/ request for lower TDS on interest income on fixed deposits/bonds usually received from banks/other financial institutions.