TDS on Interest and Dividends in 2026: Aligning Banks, DP, and Form 26AS Early

Interest from savings accounts, fixed deposits, recurring deposits, and bonds, as well as dividends from Indian companies or mutual funds, can carry tax deducted at source when thresholds and rules in the relevant year are met. Banks, NBFCs, registrars, and depositories report these deductions against your PAN. If PAN is inoperative, not linked, or KYC is stale, credits can stall and refunds for excess TDS stretch into AY 2026-27 or later. Retirees and HNIs with wide ladders of FDs across branches feel this first.

Form 26AS and the AIS family

Form 26AS shows TDS credited to your PAN, along with other compliance markers. The Annual Information Statement adds layers such as interest from several payers in one view. Treat March, June, September, and December as reconciliation months: download 26AS, compare each TDS line to your passbook and interest certificates, and raise corrections early while the bank's nodal officer still remembers the quarter.

Fixed deposits across many branches

Each branch may treat TDS independently near thresholds. A senior with twelve small FDs can breach the aggregate interest line while each branch believed the customer was below limit. Consolidate FD maturity and interest accrual planning on one sheet; consider merging to fewer relationships where rates are competitive so reporting is simpler.

Form 15G and 15H

When eligible, submit Form 15G or 15H before the first interest accrual of the year for each payer. A forgotten branch where you opened FD five years ago can deduct TDS at default rates until paperwork arrives. Keep acknowledgement receipts in the same folder as the FD advice.

Dividends and demat accounts

Dividend TDS rules have shifted in recent Finance Acts; confirm whether the company or mutual fund is deducting at source and at what rate for your holder category. Demat and bank primary account should match the PAN that receives AIS entries.

Seniors and family coordination

Adult children should calendar a half day each quarter with parents: print 26AS, print bank passbook interest pages, mark mismatches, email the bank's central TDS cell where needed. This is cheaper than rushing chartered accountants in July.