Budget 2026: Relief for senior citizens as Form 15G, 15H filing gets easier

Senior Citizens and Budget 2026: The proposal aims to cut paperwork and prevent unnecessary tax deduction for eligible investors, especially senior citizens holding securities across companies

Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2026–27 in Parliament on Sunday, announced a set of measures linked to tax compliance and investor convenience. One of the proposals allows depositories to accept Form 15G and Form 15H from investors who hold securities across multiple companies, instead of requiring separate submissions to each issuer.

 

The change is expected to simplify how retail investors, including senior citizens, prevent tax deduction at source on eligible income.

 

Form 15G and Form 15H are self-declaration forms used by taxpayers to request that no tax be deducted at source on income such as dividends or interest, provided their total income remains below the taxable limit. Form 15G applies to individuals below the age of 60, while Form 15H is meant for senior citizens.

 

 

Currently, investors holding shares or other securities in multiple companies are often required to submit these forms separately to each company or intermediary. This leads to repeated filings and, in some cases, delays or errors that result in tax being deducted despite eligibility for exemption.

 

Under the Budget proposal, depositories would be allowed to accept these declarations centrally and pass the information to the relevant issuers. The move comes at a time when dividend income is fully taxable in the hands of investors, following the removal of the dividend distribution tax regime, making timely submission of these forms more important.

 

What it means for taxpayers

 

Tax experts said the proposal could reduce paperwork and help eligible investors avoid unnecessary tax deductions.

 

“This comes as a relief for senior citizens and small investors by simplifying the process of submitting Form 15G and Form 15H,” said Vipin Upadhyay, Partner, King Stubb & Kasiva, Advocates and Attorneys. “Investors earning dividend or interest income from securities of multiple companies will now be able to file a single declaration with the depository, instead of submitting separate forms to each company or issuer.”

 

He said the existing system often resulted in tax being deducted even when investors were eligible for exemption. “This addresses a long-standing procedural burden that often led to inadvertent TDS deductions and subsequent refund claims, particularly impacting senior citizens who rely on interest and dividend income for regular cash flows,” Upadhyay said.

 

Adhil Shetty, CEO, BankBazaar, also pointed to the practical impact of the change. “The proposal to allow depositories to accept Forms 15G and 15H centrally is a practical step towards simplifying TDS exemption for eligible investors holding securities in dematerialised form,” he said.

 

 

“At present, such investors are required to submit these declarations separately to multiple issuers, making the process cumbersome and prone to delays. A depository-led, centralised mechanism would reduce this repetition and ease compliance,” Shetty said.

 

For taxpayers whose income remains below the taxable threshold, the change could help avoid tax deductions during the year rather than relying on refunds later. “This can help avoid unnecessary TDS on interest and dividend income, reducing the need to claim refunds later,” Shetty said. “From a system perspective, it brings tax processes closer to the way investments are now held and transacted, and helps with cash-flow management during the year.”