Budget 2026: Single TDS Declaration to Depository for All Your Investments Starting April 2027

The Finance Minister, Smt Nirmala Sitharaman, has announced a major relief for the investors filing the declaration forms for non-deduction of TDS in the Union Budget 2026. As per the new rules, the investors no longer need to file separate declarations (Form 15G or Form 15H) for each security or mutual fund unit across multiple companies or fund houses.

Currently, investors are required to submit a separate written declaration form (Form 15G or 15H) under Section 393(6) of the Income Tax Act to each entity for the non-deduction of the TDS on the dividends, interest and other incomes from securities and mutual fund units. This creates a lot of paperwork and adds an extra compliance burden for the investors who earn income from several units and securities, as they have to submit separate forms for each company.

Therefore, to reduce this compliance burden, Budget 2026 has proposed the enabling filing of a declaration for no deduction to a depository. Starting from April 1, 2027, the eligible resident investors can submit a single declaration form directly to the depository, like the NSDL or CDSL, for the non-deduction of TDS on dividends and other incomes across multiple securities and mutual fund units, eliminating the need for separate multiple forms with different companies. The depository will submit the declaration to relevant companies, making the process simple and smooth.

This relief is meant only for the investors holding the securities or units in the depository and where the securities are listed on a registered stock exchange in India.

Budget 2026 also announced relief for companies paying dividends and interest. Now the companies no longer need to submit the received declarations to the Income Tax Department monthly. The time limit for submitting the declaration has been changed to a quarterly basis.

These changes are effective from April 1, 2027.