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Budget 2026 has introduced a significant tax compliance reform aimed at easing the burden on senior citizens. In a move welcomed by elderly investors across the country, the government has announced that senior citizens will no longer need to submit Form 15H multiple times to prevent Tax Deducted at Source (TDS) on interest income from certain investments. This change is expected to simplify procedures, reduce paperwork, and minimize errors related to TDS deductions.

While presenting the Union Budget on February 1, Finance Minister Nirmala Sitharaman highlighted that the reform is designed to benefit investors who hold multiple securities across different companies, particularly in dematerialised (demat) form. The announcement marks a major step toward improving ease of compliance for senior citizens who rely on fixed-income investments.

What Is Form 15H and Why Is It Important?

Form 15H is a self-declaration form that can be submitted by resident senior citizens aged 60 years or above. By filing this form, eligible individuals request financial institutions not to deduct TDS on interest income, provided their total taxable income remains below the basic exemption limit.

Senior citizens commonly use Form 15H to avoid TDS on income earned from:

• Bank fixed deposits (FDs)

• Corporate bonds and debentures

• Non-convertible debentures (NCDs)

• Municipal bonds

• Interest-bearing securities held in demat accounts

Until now, the process required senior citizens to submit Form 15H separately to each bank, company, or bond issuer, making it a repetitive and time-consuming exercise.

What Has Changed in Budget 2026?

The key change introduced in Budget 2026 is the centralisation of Form 15H submission for demat-held securities. Going forward, senior citizens will be allowed to submit Form 15H only once with their depository, such as NSDL or CDSL.

Once submitted, the depository will electronically share the declaration with all relevant companies or issuers whose bonds or debentures are held in the investor’s demat account. This eliminates the need for multiple submissions to different entities.

It is important to note that this reform mainly applies to bonds and debentures held in demat form. The process for bank fixed deposits remains unchanged, and Form 15H will still need to be submitted separately to banks, as applicable.

How Senior Citizens Will Benefit

This reform offers several practical benefits to senior citizens:

• One-time submission reduces paperwork and administrative stress

• Eliminates confusion caused by dealing with multiple issuers

• Minimises the risk of accidental TDS deductions due to missed submissions

• Provides a smoother investment experience for bondholders

• Improves accuracy through a centralised digital system

Earlier, it was common for TDS to be deducted by one issuer simply because the form was not submitted on time, even if it had been filed elsewhere. The new system significantly reduces such errors.

The change is particularly beneficial for retail bond investors, a large proportion of whom are senior citizens seeking stable and predictable income.

What Remains the Same

Despite the procedural ease, some aspects of Form 15H remain unchanged:

• Eligibility criteria for Form 15H stay the same

• Minimum age requirement continues to be 60 years

• Income thresholds are unchanged

• If taxable income exceeds the exemption limit, TDS will still be deducted

Senior citizens must continue to ensure that they meet eligibility conditions before submitting Form 15H, as incorrect declarations can attract penalties.

A Step Toward Simplified Tax Compliance

Overall, the Budget 2026 announcement reflects the government’s intent to simplify tax-related processes using digital infrastructure. By reducing repetitive compliance for senior citizens, the reform enhances financial convenience while maintaining transparency and accountability.

For elderly investors managing multiple bond investments, this move is a welcome relief and a positive step toward making India’s tax system more senior-friendly.