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The Union Budget 2026–27 focuses on streamlining tax compliance and improving financial stability, while retaining the existing tax structure for this financial year. Along with changes in how retirement income is managed and investments in healthcare systems, the Budget introduces several measures aimed at supporting senior citizens. In this article, we cover the key announcements relevant to them.
Many senior citizens face challenges related to cash flow, rising medical costs, and compliance with tax laws. Some of the key issues identified in Budget 2026 include:
Interest earned from senior citizen fixed deposits, Senior Citizen Savings Schemes, and bonds is subject to 10% TDS across multiple banks and depositories. Senior citizens must file Form 15H separately with each institution every year to avoid this. Otherwise, funds get blocked as tax refunds, which can take months to recover.
Rare disease treatments and chronic medications are expensive and recurring expenses for senior citizens. These costs can disrupt long-term savings, as fixed incomes are stretched between medical needs and daily expenses.
Filings related to GST, TDS, and bank declarations can be complex, with multiple digital forms required across banks, NBFCs, and depositories. Missing or inaccurate filings may result in penalties or unnecessary tax deductions.
Budget 2026 introduces several measures to improve cash flow, ease compliance, and reduce essential expenses such as healthcare.
Form 15H is a declaration that allows senior citizens (aged 60 and above) to request that banks and other payers do not deduct TDS on interest income if their total income is below the basic exemption limit.
From April 1, 2026, senior citizens can file Form 15H once a year through the NSDL or CDSL portals, and it will apply across all linked banks, fixed deposits, demat accounts, and SCSS investments. This eliminates the need to submit the form separately to each institution and ensures full interest income is received without deductions.
The removal of customs duty on 17 life-saving cancer drugs and the allowance of duty-free personal imports for seven rare diseases provide immediate relief by reducing treatment costs, which previously formed a significant portion of senior household budgets.
The Budget has announced INR 10,000 crore in funding for the Biopharma SHAKTI scheme. This initiative focuses on strengthening pharmaceutical research and expanding biologics manufacturing to reduce dependence on expensive imported medicines, improving access to affordable treatments for diabetes, cardiac conditions, cancer, and immune disorders.
The Budget places special emphasis on strengthening mental healthcare through NIMHANS 2.0 and the upgradation of regional institutions. This aims to improve access to treatment for dementia, depression, and other neurological conditions among seniors. In addition, 1.5 lakh caregivers will be trained under national skill programmes, which may help lower the cost of home-based elderly care.
Introduced last year, the new Income Tax Act, 2025 is set to come into effect from April 1, 2026. It focuses on clearer tax language, reducing confusion around exemptions, deductions, and filing requirements. Changes such as automatic nil or lower TDS certificates and improved TDS/TCS processes will reduce paperwork for senior citizens with income from interest, dividends, and investments.
Union Budget 2026 supports senior citizens through better cash flow management, simpler compliance, and lower healthcare costs. As financial needs change over time, having easy access to savings and steady interest income remains important. A DBS Treasures premium savings account helps manage funds efficiently while supporting everyday banking and long-term financial planning.
*This article is based on publicly available information/news reports on Union Budget 2026-27 and is for informational purposes only. Please consult your advisor for financial/taxation matters, as DBS Bank does not advise on any tax aspects.
