CBDT clarifies that Form 15G/ Form 15H submitted for Financial Year (FY) 2019-20 shall remain valid upto 30 June 2020, i.e. for first quarter of FY 2020-21, in case the same have not been submitted by the concerned eligible persons in the wake of COVID-19 outbreak, to avoid TDS where there is no tax liability.
Form 15G/ 15H submitted for FY 2019-20 valid upto 30 June 2020, clarifies CBDT vide Order dt. 3 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
1. 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 it’s 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.