No more multiple Form 15G, 15H filings? Budget 2026 proposes centralised route

Form 15G, 15H,

• Depositories to accept Form 15G and 15H for investors with multiple securities
• Centralised process aims to reduce paperwork and TDS errors for retail investors
• Proposal eases tax compliance for small taxpayers and seniors

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Union Budget 2026: In a move aimed at simplifying tax compliance for retail investors, Finance Minister Nirmala Sitharaman in her Budget 2026 speech proposed enabling depositories to accept Form 15G and Form 15H from taxpayers holding securities across multiple companies and share the declarations directly with the relevant entities.

Finance Minister Nirmala Sitharaman in the Budget 2026 speech said, “For the ease of taxpayers holding securities in multiple companies, I propose to enable depositories to accept Form 15G or Form 15H from the investor and provide it directly to various relevant companies.”

Form 15G and Form 15H are self-declaration forms that allow eligible taxpayers to seek exemption from tax deducted at source (TDS) on income such as dividends and interest, provided their overall income remains below the taxable threshold. While Form 15G applies to individuals below 60 years of age, Form 15H is available exclusively to senior citizens. At present, investors are required to submit these forms separately to each company or intermediary, often resulting in duplication and compliance hassles.

The proposed change seeks to centralise this process through depositories such as NSDL and CDSL, allowing investors to submit the declaration just once. The depository would then disseminate the information to all companies where the investor holds securities, reducing paperwork and the risk of excess or incorrect TDS deductions.

Lt Col Rochak Bakshi, CFP and Managing Director, Trunor Enterprises, said centralising the submission of Form 15G and Form 15H could ease compliance significantly for small taxpayers and senior citizens. “By removing the need to approach multiple companies, the proposal helps investors protect eligible income from unnecessary TDS while reducing administrative effort,” he said.

The proposal also assumes significance in the post-dividend distribution tax regime, where dividend income is fully taxable in the hands of investors, making timely and accurate submission of self-declaration forms critical to avoid excess tax deduction.

Kirang Gandhi, Pune-based financial mentor, said allowing depositories to accept Form 15G and Form 15H could improve overall efficiency in tax administration. “Centralised acceptance simplifies compliance for investors holding shares across multiple companies, reduces paperwork, and lowers the chances of errors in TDS deductions,” he said.