Income tax return filing 2026: Do you need to report post office savings scheme interest income in ITR?

What is taxed under ‘Income from Other Sources’?

• Bank interest

• Interest on securities and investments

• Family pension

• Dividends

• Lottery winnings, horse race income, gambling and card game winnings

• Interest received on compensation or enhanced compensation

• Compensation received due to the termination of employment

What does the law say?

Under Section 194A of the Income Tax Act, 1961, Tax Deducted at Source (TDS) applies to interest income other than interest on securities.

However, banks are not required to deduct TDS if the total interest income remains within the prescribed threshold:

• ₹50,000 for most taxpayers

• ₹1 lakh for senior citizens

What has changed under the new Income Tax Act, 2025?

Which post office savings scheme interest income attracts TDS?

• Post Office Time Deposits

• Recurring Deposits (RDs)

• Monthly Income Scheme (MIS)

• Senior Citizens Savings Scheme (SCSS) – if applicable through post office channel

• Other taxable deposit-based Post Office schemes

Post Office savings scheme where TDS is not applicable

• Post Office Savings Account (small savings account)

• Public Provident Fund (PPF)

• Sukanya Samriddhi Account (SSA)

• Kisan Vikas Patra (KVP) (interest is taxable on maturity, but no TDS is deducted)

“Income from Other Sources” is a residual head that includes earnings not covered under salary, house property, capital gains, or business income.

If they appear in AIS or Form 26AS but are not included in the ITR, even minor quantities of concealed information may result in notices from the Income Tax Department.

Taxpayers can prevent compliance problems, accurately compute taxes, and improve their financial planning by accurately reporting all taxable income.