Budget 2026 explainer | What the new Form 15H rule means for senior citizens

The Union Budget 2026 has introduced a procedural change that could make tax compliance easier for senior citizens who earn interest income from bonds, debentures, and other demat-held securities. The government will now allow depositories to centrally accept Form 15H from investors and share it with relevant companies, replacing the current requirement of multiple submissions.

Presenting the Budget on February 1, Finance Minister Nirmala Sitharaman said this measure aims to ease compliance for investors holding securities in multiple companies.

Why Form 15H matters for senior citizens

Form 15H is a self-declaration that resident individuals aged 60 years and above can submit if their total taxable income is below the basic exemption limit. By filing it, they request that no Tax Deducted at Source (TDS) be deducted from their interest income.

ALSO READ | From TDS simplification to MAT exemption: Major tax reforms in Budget 2026

Senior citizens typically use Form 15H for income earned from:

• Bank fixed deposits
• Corporate bonds and debentures
• Non-convertible debentures (NCDs)
• Municipal bonds
• Certain interest-bearing securities held in demat form

What exactly changes in Budget 2026?

At present, an investor must file Form 15H separately with every bank, company, or issuer where they earn interest. Under the new proposal:

Investors can submit Form 15H once with their depository (NSDL or CDSL).

The depository will transmit the declaration to all relevant issuers where the investor holds securities.

The change primarily applies to demat-held instruments rather than traditional bank deposits.

How this affects senior citizens in practice?

Single submission instead of multiple filings

Elderly investors who hold bonds across several companies will no longer need to track different filing dates or resubmit forms repeatedly.

Lower risk of unintended TDS deductions

Many retirees currently face TDS cuts because they miss filing Form 15H with one issuer while filing it with others. A centralised system reduces this risk.

Smoother experience for bond investors

Vishal Goenka, Co-Founder of IndiaBonds.com, said that streamlining 15G/15H filings will particularly benefit retail bond investors, a group in which senior citizens are heavily represented.

Greater alignment with digital investing

Akshay Mehrotra, MD & Group CEO of Fibe, said the move reduces operational friction and strengthens the digital financial ecosystem by making compliance simpler for both investors and companies.

What does NOT change

The Budget does not alter:

• Eligibility criteria for Form 15H
• The age requirement of 60 years
• The income threshold for filing the form
• Existing TDS rules if a person is ineligible

If a senior citizen’s taxable income exceeds the exemption limit, TDS will continue to apply even under the new system.

ALSO READ | Budget 2026: Income tax filing deadline for small taxpayers extended to August 31

First Published: 

Feb 2, 2026 7:40 AM

IST