ITR Filing 2026: NBFC And HFC Interest Must Be Declared Under Schedule OS

The updated ITR forms mandate clearer reporting of non-bank investment income. Previously, such interest was often clubbed with bank FD earnings, but now it must be itemized separately to avoid mismatches and ensure accurate tax treatment.

New Disclosure Requirement

Taxpayers filing ITR‑2, ITR‑3, ITR‑5, and ITR‑7 must report NBFC and HFC interest under Schedule OS. This structured reporting will help the Income Tax Department track non-bank deposits more effectively.

Impact On Investors

Interest income from NBFCs and HFCs will continue to be taxed at individual slab rates. Investors must ensure their declared figures match Form 26AS and TDS certificates to avoid notices. The change particularly affects those with significant deposits in corporate FDs.

Filing Deadline

The last date for filing returns remains July 31, 2026. Taxpayers are advised to prepare early and verify all income sources to ensure smooth compliance.

Key Highlights

• NBFC and HFC FD interest now under Schedule OS
• Applies to ITR‑2, ITR‑3, ITR‑5, and ITR‑7
• Interest taxed at slab rates, similar to bank FDs
• Mismatch notices possible if not disclosed correctly
• Deadline for filing: July 31, 2026

Sources: Mint, Economic Times, Times Now, Business Standard