ITR Filing 2026-27: If you put money into a Non-Banking Financial Company (NBFC) or a Housing Finance Company (HFC) fixed deposit or debenture during FY 2025-26 and earned interest on it, this matters to you. The Income Tax Department has made a key change to the return forms and filing rules for Assessment Year (AY) 2026-27. You can no longer report this income anywhere you like — or quietly leave it out.
Under the new ITR filing 2026-27 rules, interest earned from NBFC and HFC investments must now go into a specific, dedicated column. The July 31, 2026 deadline is closer than it looks. Better to understand this now.
The Income Tax Department has revised ITR-2, ITR-3, ITR-5, and ITR-7 for AY 2026-27. The biggest change is in Schedule OS — Other Sources. Earlier, there was no clear, defined place to show interest from corporate FDs or NBFCs. So investors just entered it wherever seemed right. Different people, different columns. Total confusion.
That's done now.
The revised form explicitly lists NBFCs, HFCs, and other companies under the 'Others' sub-column within Schedule OS. It's a direct fix to a problem that's existed for years — and the department has finally closed that gap.
Schedule OS is the part of your income tax return where you report earnings that don't come from salary, property, capital gains, or business. Think of it as the "everything else" bucket. For AY 2026-27, its scope has been expanded. It now covers savings account interest, bank and post office FD interest, income tax refund interest, and — specifically — interest from companies, NBFCs, and HFCs.
Gifts above ₹50,000, family pension, and bonuses from insurance companies also get disclosed here. And if you're not in the business of lending money, your FD and debenture income from these entities belongs in this section. Full stop.
Wait. Before you panic — your tax amount isn't going up.
The tax rates haven't moved. NBFC or HFC FD interest is still taxed at your applicable slab rate, exactly like salary or bank interest. If you're in the 30% bracket, this income gets taxed at 30%. Always was. Always will be. The only thing that's changed is where you enter it in the form — not how much you pay on it.
The whole point of this change is cleaner, more accurate reporting. That's it.
This NBFC and HFC interest income reporting change affects four types of filers. Salaried individuals and retired employees with no business income typically use ITR-2. If you combine employment or investments with a small business or profession, ITR-3 is your form. Trusts and partnership firms fall under ITR-5 and ITR-7 respectively.
The last date to file your ITR for AY 2026-27 is July 31, 2026. Miss it, and Section 234F kicks in — a late fee of up to ₹5,000. On top of that, if there's any tax outstanding, interest piles on separately. So get your investment details in order now. Don't leave it for the last week.
A: You report it under Schedule OS — specifically under the 'Others' sub-column that now explicitly mentions NBFCs, HFCs, and other companies. This is the dedicated column introduced in the revised ITR-2, ITR-3, ITR-5, and ITR-7 forms for AY 2026-27. Don't enter it under bank interest or anywhere else in the form.
A: No, the tax treatment is the same. Both are taxed at your applicable income tax slab rate. The 2026-27 change only affects how you report it in your return — not how much tax you owe on it. If you're in the 30% slab, you pay 30% on this income, just as you always did.
A: Yes, NBFCs and HFCs are required to deduct TDS on interest payments above the threshold limit — generally 10% if your PAN is on record. But TDS is an advance deduction, not your final tax liability. You still need to declare the full interest income in Schedule OS and pay any remaining tax if your slab rate is higher than the TDS rate.
A: If the income was not reported correctly in earlier returns, you may consider filing a revised or updated return under Section 139(8A) if you're eligible. Given that the department is now tightening the reporting structure, under-reporting of such income is more likely to attract scrutiny. It's better to consult a tax professional for your specific situation.
A: Under Section 234F, a late fee of up to ₹5,000 applies if you file after July 31, 2026. If your total income is below ₹5 lakh, the maximum fee is capped at ₹1,000. On top of this, if you have any unpaid tax, interest under Sections 234A and 234B will also accrue. Filing on time is simply the cheaper option.
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