Extension of time for Submission of Form 15G/Form 15H for FY 2020-21

The Central Board of Direct Taxes (CBDT) has allowed Extension of time for Submission of Form 15G/Form 15H for FY 2020-21 to avoid TDS .The Form 15G/Form 15H submitted by taxpayers for FY 2019-20 to remain valid till June 30, 2020 for FY 2020-21. This means 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 submitted valid 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.

Form 15H:

Under sub-section (1C) of section 197A of the Income-tax Act, 1961,  Form 15H is a Declaration to be made by an individual who is of the age of sixty years or more claiming certain receipts without deduction of tax.
  • Form 15H can be submitted only by INDIVIDUAL ABOVE the age of 60 years.
  • Estimated tax for the previous assessment year should be NIL. That means he did not pay any tax for the previous year because his income is not coming under the taxable limit.
  • You need to submit form 15H to banks if interest from one branch of a bank exceeds 40000/- in a year (prior to FY 2019-20, the limit was Rs 10,000).
  • This form should be submitted to all the deductors to whom you advanced a loan. For example you have deposit in three SBI bank branches Rs.100000 each. You must submit the Form 15H to each branch.
  • Submit this form before the first receipt of your interest. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of the quarter.
  • You need to submit for 15H if interest on loans, advances, debentures , bonds or say interest income other than interest on bank deposits exceeds Rs.5000/-.

Form 15G:

Under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, Form 15G is a Declaration to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax.
  • Form 15G can be submitted by Individual who is below the age of 60 years and by Hindu Undivided family.
  • The points applicable for 15H are applicable to the Form 15G as well, except that the Form 15H is applicable only for the senior citizens.
  • Form 15G should be submitted before the first receipt of interest on fixed deposits

Difference between Form 15G and Form 15H:-

1. Form 15G can be submitted by an individual BELOW the Age of 60 Years while form 15H can be submitted by senior citizens i.e. individual’s ABOVE the age of 60 years.
2. Form 15G can be submitted by HUF but form 15H can be submitted only by INDIVIDUAL above the age of 60 years.
3. Form 15G CAN NOT BE filed by any person whose income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax.

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