Deadline Extended for form Submission to Avoid TDS payment

Giving a huge relief in the series, the CBDT has notified extension in the validity of the forms namely 15G & 15H of the F.Y. 2019-20 to June 30 to avoid payment of TDS which was earlier required to be paid in the first week of April every year. Accordingly, now the forms 15G/Form 15H shall be possible to be submitted by the taxpayers for FY 2019-20 till June 30, 2020, to FY 2020-21.

What does the notification mean? Who will this benefit?

This announcement is for the investors who need to notify the Government for claiming either nil or lesser amount for income -tax purposes. Thus, to claim a deduction of tax assesses can submit these in the first week of July 2020 for FY 2020-21.

For a person who has already assessed his income and filed submitted these forms for the F.Y. 2019-20 to the appropriate authorities, such forms shall be deemed to be valid till 30.06.2020  and also valid for  FY 2020-21.

However, where the payer hasn’t deducted tax or submitted forms 15G and 15H respectively, shall be necessarily needed to do so, under the provisions of the rule 31A(4) (vii) of the Income Tax rules, 1962  for the purposes of reporting payments/ credits details in the TDS statements in the quarter ending on 30.06.2020.

Such news has come as a huge relief for those taxpayers who usually need to file and submit these forms for avoiding TDS payments in the month of April every year on the receipt of interest incomes on any investment made by them on instruments like fixed deposits or bonds basically from bank/ NBFCs or other financial institutions.

According to the Central Board of Direct Taxes, the notification is important as during the difficult times of pandemic there may be cases where an individual may be facing hardships to submit these forms and any such delay may lead to him resulting in payment of TDS without the crossing of the present limits or without any “actual” liability.  Hence, such announcements have been made with a view to mitigating the ill-effects of such hardships among taxpayers.

What do the normal provisions say?

Under the provisions of rule 31A(4) (vii) of the Income Tax rules, 1962  where an interest income of an individual assesse crosses the limit of Rs. 40000/- in a financial year, a certain percentage of the amount is deducted as Tax Deducted at Source(TDS). The limit is different in case of a senior citizen (i.e. 50000/- in a year)

Where the income of the assessee (aged between 15 to 60 years) is assessed so as to be under the taxability for a particular F.Y. and further there is no tax liability of such individual theForm 15G can be submitted for that financial year only.

Similarly, the form 15H could be filled in case there is no tax liability for a financial year for an individual who is more than 60 years in age.

Author:

eStartIndia Team