Extra Time Given to Senior Citizen and Others to file Form 15G & 15H to avoid TDS for FY 2020-21
The Income Tax Department has given facility to Senior Citizen to File Form 15G to prevent TDS deduction on your income and Other Individuals to file Form 15H, Mostly the Forms are Submitted in Bank in First week of April to avoid TDS Deduction by Bank on the interest income
PAN is compulsory to avail the above benefit and Following condition are to be satisfied before filing by Senior Citizen & Others
- You are an individual or HUF
- Only Resident Indians can apply. Non Resident – NRI Cannot apply
- Your Age should be Equal to or more than 60 Years for Form 15G and for every one else they can apply in Form 15H
- Tax calculated on your Total Income is NIL for the Financial Year 2020-21
Banks and Post office will Deduct TDS if the Interest Income is more than Rs 40,000/- in any Financial Year from Finance Act 2019 onward . So in case your total income is below taxable limit even after considering Tax Rebate (i.e If Income is below 5 Lakh Rs) you can still file Form 15G and Form 15H
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. Below is the Tweet from Income Tax Department
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.
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 15Hwill 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.
The extension has come as a big relief for Senior Citizen and others who were worried because of Lockdown and Non Submission the validity of Form 15G and Form 15H for FY 2020-21
New income tax rules from 1 April 2020 Find out what changes from today. View Video Below