In order to overcome the issues caused due to the COVID-19 outbreak and the lockdown period, the Central Board of Direct Taxes (CBDT) has extended the validity of Forms 15G and 15H of FY 2019-20 by 3 months.
An order issued by the Board yesterday said that “due to an outbreak of pandemic COVID-19 virus, there is a severe disruption in the normal working of almost all sectors of the economy, including the 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 in 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 the exercise of its powers under section119 of the Income Tax Act.”
The order further said that In case if a person had submitted valid Forms 15G and 15H to the Banks or other Institutions for FY 2019-20, then these Form 15G and 15H will be valid up to 30.06.2020 for FY 2020-21 also.
The Board further reiterated that the payer who has not deducted tax on the basis of said Forms 154 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.To Read the full text of the Circular CLICK HERE