Investing in NBFC or HFC fixed deposits or debentures? Interest income must be disclosed in ITR 2026

If you invested in instruments such as fixed deposits and debentures offered by Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) in FY 2025-26, you need to disclose your interest income from such investments in the new income-tax return forms — ITR‑2, ITR‑3, ITR‑5, and ITR‑7 — for AY 2026-27 under Schedule OS.

Interest income from fixed deposits and debentures or NBFCs, HFCs and corporates are taxed at individual slab rates. Schedule OS in the ITR forms requires a taxpayer to provide details of income from other sources, such as interest, dividends, winnings, and other miscellaneous income.

"The new ITR forms clarify that interest earned from companies, Non-Banking Financial Companies (NBFCs), and Housing Finance Companies (HFCs) shall be reported under the ‘Other’ column of Schedule OS. Accordingly, interest income from instruments such as fixed deposits, debentures, etc., with such entities is required to be disclosed in Schedule OS where the assessee is not engaged in the business of money lending," tax experts at Taxmann said in a document highlighting over 20 changes in the new ITR forms.

What details are required to be filled in Schedule OS

The following are some of the key details required to be filled under Schedule OS of the ITR forms for AY 2026-27:

• Dividend income

• Interest income from savings bank account, bank and post office deposits, income tax refunds, pass-through income/loss, taxable provident fund interest, interest from companies, NBFCs and HFCs.

• Residential income from machinery, plants, buildings

• Income under Section 56(2)(x) of the Income-tax Act, 1961, which includes gifts worth over ₹50,000 received without consideration

• Family pension

• Income from a retirement benefit account maintained in a notified country

• Sum received by a unit holder from a business trust

• Amount received as a bonus from a life insurance company

In the ITR forms for AY 2025-26 (FY 2024-25), the "Others" column didn't specifically mention interest from NBFCs, companies, etc.

The due date to file ITR for non-audit taxpayers for AY 2026-27 is July 31, 2025.