TDS on interest from Bank

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This discussion clarifies the correct procedure for submitting Form 15H to banks to avoid Tax Deducted at Source (TDS) on interest. The user initially submitted Form 15H for FY 2020-21 in April 2020. However, their bank deducted TDS because a previous Form 15H for FY 2019-20 was valid only until June 30, 2020, and the bank expected a resubmission for the current financial year. The consensus is that the bank's action was correct, as the declaration on Form 15H is for the entire financial year, and a new submission might be required if the validity period of the previous form expires.

S Kalyanasundaram

S Kalyanasundaram (Querist)

29 August 2020 I had submitted Form 15H through on line to my Bank for the Financial year 2020-21 during April 2020.

As the earlier Form 15H submitted for the Financial Year 2019-20 has been made valid upto June 30th 2020, the bank expects to submit Form 15H for the FY 2020-21 again after 1st July 2020. In the absence of re-submission after 1st July,2020, the bank has effected TDS.

What is the correction position? Is the notification of Income Tax department extending the period of validity of Form 15H submitted for the FY 2019-20 upto June 2020, amounts to validity of Form 15H submitted during April 2020 for the FY 2020-21 valid only upto June 2020?

Thanks/Regards.

S Kalyanasundaram

CA Raj Doshi

CA Raj Doshi (Expert)

30 August 2020 Yes. The position by bank of deducting tds is correct.

S Kalyanasundaram

S Kalyanasundaram (Querist)

30 August 2020 When the Form 15 H has been submitted only in April 2020 for the current financial year of 2020-21, why it should be submitted again in July 2020? In the Form 15H the declaration has been made for the full financial year of 2020-21 and not for three months only upto June 2020.

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