Income Tax Department revises ITR forms for 2026-27, requiring separate reporting of interest income from NBFCs and HFCs under Schedule OS.

Income Tax Department revises ITR forms for 2026-27, requiring separate reporting of interest income from NBFCs and HFCs under Schedule OS. This change improves data matching with Form 26AS and Annual Information Statement, enhancing transparency in income classification. Taxpayers previously reported interest income as aggregate amounts, but the new format demands itemized disclosure of interest from non-banking financial companies, housing finance companies, and corporate instruments. The revision aligns with tax authorities' focus on reporting accuracy and precise classification. While the treatment of NBFC and HFC interest income remains unchanged, taxed under Income from Other Sources at applicable slab rates, taxpayers must now maintain detailed documentation to reconcile income sources and avoid compliance issues with tax authorities.