Union Budget 2026 Brings Form 15G Into Spotlight to Ease TDS Burden

In the Union Budget 2026, Finance Minister Nirmala Sitharaman drew attention to Form 15G, a small but important tax document that can make a big difference for ordinary taxpayers. The move reflects the government's focus on simplifying compliance and reducing unnecessary TDS deductions for individuals with low or zero tax liability.

Many small savers often face cash flow issues when TDS is deducted from their interest income, even though they are not liable to pay tax. Refunds can take months, creating avoidable delays. By highlighting Form 15G, the Finance Minister aimed to ensure that eligible citizens can access their full income smoothly.

What is Form 15G?

Form 15G is a self-declaration form that allows taxpayers to request banks and financial institutions not to deduct TDS on interest income. It can be submitted by Individuals below 60 years of age.

Interest earned from fixed deposits, recurring deposits, and certain bonds often attracts TDS once it crosses the prescribed threshold. Submitting Form 15G in advance prevents this deduction, but the declaration must be accurate, as providing false information can attract penalties under income tax laws.

By highlighting Form 15G in Budget 2026, the government emphasised a citizen-friendly approach to taxation. For salaried individuals, small savers, and households reliant on interest income, correct use of the form can mean better liquidity, fewer refund hassles, and a smoother tax experience.