CBDT extends the validity of Form 15G and Form 15H: To mitigate the genuine hardships faced by taxpayers due to the COVID-19 pandemic, CBDT issues Order u/s 119 F.No.275/25/2020-IT(B) dated 03rd April 2020 regarding submission of Form 15G & Form 15H for FY 2020-21.
The CBDT order says Form 15G and Form 15H 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.
In order to provide relief to certain categories of taxpayers from TDS on certain incomes, the income tax law has enshrined the provisions of filing of Form No. 15G and Form No. 15H to the payer or deductor by the payee so that TDS on income can be saved.
Form 15G applies to an Individual below 60 years of age. It also applies to non-Individuals.
Form 15H applies only to Individuals who is a resident senior citizen.
The CBDT order says Form 15G and Form 15H 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.
In order to provide relief to certain categories of taxpayers from TDS on certain incomes, the income tax law has enshrined the provisions of filing of Form No. 15G and Form No. 15H to the payer or deductor by the payee so that TDS on income can be saved.
Form 15G applies to an Individual below 60 years of age. It also applies to non-Individuals.
Form 15H applies only to Individuals who is a resident senior citizen.
Know
more on Form 15G and Form 15H in Income Tax
Normally, Form 15G and Form 15H are filed by the depositors to the banks and financial institutions at the beginning of every financial year in the month of April. In many cases, many financial institutions allow submitting the Form 15G and Form 15H at the end of the financial year - in the month of March.
Therefore, Form 15G or Form 15H for the FY 2019-20 must have been filed by now. However, it may not be possible to submit the Form 15G or 15H in the month of April 2020 due to lockdown being followed throughout the country since March 25 and many people may find it difficult to visit the branch of the bank or financial institutions to submit the forms for the financial year 2020-21.
Hence, in order to mitigate the genuine hardships faced by taxpayers due to the COVID-19 pandemic, CBDT issued an Order on 03-04-2020 to provide that if a person had submitted valid Forms 15G and 15H to the Banks or other Institutions for F.Y. 2019-20, then these Form 15G and 15H will be valid up to 30.06.2020 for FY 2020-21 also. In other words, if a person had submitted these forms in the previous year 2019-20 the same shall be continued to be valid for the 1st quarter of the FY 2020-21.
The depositors should file new and fresh Form 15G and Form 15H on and from July 1, 2020 for the FY 2020-21.
This is a relaxation provided to the depositors from the filing of Form 15G and Form 15H. This will benefit only those persons who had filed the similar forms for the FY 2019-20. In case no such form is filed in the last year, no such benefit will be available to them and TDS may apply on their accrued income.
However, nowadays, many banks and financial institutions allow submitting Form 15G or Form 15H online on their portal. If a person is tech-savvy and has online banking facility and access to the internet, he may file Form 15G or Form 15H online without any difficulty.
This order will give relief to those who still file the Forms manually at the branch offices of the banks, etc.
However, the banks or financial institutions who did not deduct taxes based on last year's Form 15G or Form 15H shall continue to report the income as per the normal provisions of the law.
Therefore, Form 15G or Form 15H for the FY 2019-20 must have been filed by now. However, it may not be possible to submit the Form 15G or 15H in the month of April 2020 due to lockdown being followed throughout the country since March 25 and many people may find it difficult to visit the branch of the bank or financial institutions to submit the forms for the financial year 2020-21.
Hence, in order to mitigate the genuine hardships faced by taxpayers due to the COVID-19 pandemic, CBDT issued an Order on 03-04-2020 to provide that if a person had submitted valid Forms 15G and 15H to the Banks or other Institutions for F.Y. 2019-20, then these Form 15G and 15H will be valid up to 30.06.2020 for FY 2020-21 also. In other words, if a person had submitted these forms in the previous year 2019-20 the same shall be continued to be valid for the 1st quarter of the FY 2020-21.
The depositors should file new and fresh Form 15G and Form 15H on and from July 1, 2020 for the FY 2020-21.
This is a relaxation provided to the depositors from the filing of Form 15G and Form 15H. This will benefit only those persons who had filed the similar forms for the FY 2019-20. In case no such form is filed in the last year, no such benefit will be available to them and TDS may apply on their accrued income.
However, nowadays, many banks and financial institutions allow submitting Form 15G or Form 15H online on their portal. If a person is tech-savvy and has online banking facility and access to the internet, he may file Form 15G or Form 15H online without any difficulty.
This order will give relief to those who still file the Forms manually at the branch offices of the banks, etc.
However, the banks or financial institutions who did not deduct taxes based on last year's Form 15G or Form 15H shall continue to report the income as per the normal provisions of the law.
Read the full text of the CBDT Order dated 03-04-2020 extending the validity of Form 15G and Form 15H
F. No. 275/25/2020-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block. New Delhi
3rd April, 2020
Subject: - Order u/s 119 of the Income-tax Act, 1961 (the Act) regarding submission of Form 15G and 15H for Financial Year-2020-21-reg
Due to outbreak of pandemic Covid-19 virus, there is severe disruption in the normal working of almost all sectors of economy including functioning of the Banks, other Institutions etc. Amidst such situation, there can be instances that some eligible persons may not be able to submit the Form 15G and 15H timely to the Banks, other Institutions etc. This would result into the deduction of TDS by the Banks and other Institutions even where there is no tax-liability. To mitigate the genuine hardship of such persons, the CBDT issues following directions/clarifications by exercise of its powers u/s 119 of the Act.
2. In case if a person had submitted valid Forms 15G and 15H to the Banks or other Institutions for F.Y. 2019-20, then these Form 15G and 15H 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 said Forms 15G and 15H, shall require to report details of such payments/credits in the TDS statement for the quarter ending 30.06.2020 in accordance with the provisions of rule 31A(4)(vii) of the Income-tax Rules, 1962.
Download copy of CBDT Order dated 03-04-2020 extending the validity of Form 15G and Form 15H
( Mahesh Kumar)
Director (IT-Budget), CBDT
Download copy of CBDT Order dated 03-04-2020 extending the validity of Form 15G and Form 15H
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