TDS relief till June 30
The income tax department has allowed individuals to submit Form 15G and 15H for the current fiscal after June 30 for claiming exemption from TDS on interest income.
Forms 15G and 15H are filed by persons whose incomes are below the taxable threshold to seek exemption from TDS on interest income.
These forms are usually submitted by taxpayers to banks and financial institutions in April.
In an order, the Central Board of Direct Taxes (CBDT) said the 15G and 15H forms submitted last fiscal will remain valid till June 30, 2020 as the Covid-19 pandemic has caused severe disruption in the normal workings of almost all sectors of the economy, including banks and other institutions.
In such a situation, some individuals may not be able to submit the forms in time and this would result in deduction of TDS even when there is no tax liability.
While Form 15H is submitted by senior citizens, 15G can be filed by an individual whose taxable income is less than the exemption threshold.
In a separate order, the CBDT said the assessees who have filed applications for the issue of certificate for lower rate/nil deduction/collection of tax deducted at source (TDS) or tax collected at source (TCS) in 2019-20 to the I-T department will now have to intimate the assessing oficer by email if the certicates were pending.
“The assessing officer shall dispose off the applications by April 27, 2020, and communicate to the applicant regarding the issuance/rejection of certificate vide email,” it said.