Extra time for submitting Forms 15G, 15H for FY2020-21 to avoid TDS

The extension of validity of Form 15G/ 15H of FY 2019-20 to June 30, 2020, would come as a relief for the individuals who usually have to submit these forms in the first week of April every financial year to avoid TDS on theirs income.

The Central Board of Direct Taxes (CBDT) has allowed the Form 15G/Form 15H submitted by taxpayers for FY 2019-20 to remain valid till June 30, 2020 for FY 2020-21. What this means is that investors who are required to submit the Form-15G/Form-15H for lower or nil deduction of tax from their income can submit it in the first week of July, 2020, as well for FY 2020-21.

As per the order dated April 3, 2020 posted by the CBDT on its official Twitter handle, "In case if a person had submitte alid 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, 1962. "