Union Budget 2026: Depositories To Accept Form 15G, 15H For Securities Held Across Companies – Here’s What It Means

Union Finance Minister Nirmala Sitharaman, while tabling the Union Budget 2026–27 in Parliament on Sunday, February 1, announced a set of measures aimed at improving ease of doing business and ease of living for taxpayers. Among the key proposals was a move to allow depositories to accept Form 15G and Form 15H from investors holding securities across multiple companies, a step expected to simplify tax compliance for retail investors, especially senior citizens.

Form 15G and Form 15H are self-declaration forms submitted to prevent tax deduction at source (TDS) on income such as dividends or interest, provided the taxpayer’s total income falls below the taxable limit. While Form 15G is applicable to individuals below 60 years of age, Form 15H is meant exclusively for senior citizens. At present, investors are often required to submit these forms separately to each company or intermediary, leading to duplication and compliance hassles.

By enabling depositories to centrally accept these declarations, the government aims to streamline the process, reduce paperwork, and minimise errors in TDS deduction. The move is particularly relevant as dividend income has been fully taxable in investors’ hands since the abolition of the dividend distribution tax regime, increasing the importance of timely submission of Form 15G and 15H. Market participants say the proposal could ease the compliance burden for small investors and improve overall efficiency in the securities ecosystem.

This is a developing story...