The Income Tax Department of India has revised the Income Tax Return (ITR) forms for the Assessment Year 2026-27, requiring taxpayers to report interest income from non-banking financial companies (NBFCs) and housing finance companies (HFCs) separately. This new requirement falls under Schedule OS, which covers various types of income not categorized as salary, house property, capital gains, or business income. The updated forms will include distinct fields for reporting this interest income, enhancing clarity and ensuring better data matching with the Annual Information Statement (AIS) and Form 26AS. Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited, emphasized that this change demands greater accountability, moving away from aggregate reporting to precise classification of income. Taxpayers are advised to maintain thorough documentation, including interest certificates and bank statements, to avoid disputes and ensure compliance. Failure to disclose or incorrectly report this income can lead to penalties ranging from 50% to 200% of the due tax, with repeat offenders facing increased scrutiny from tax authorities. The tax return process now emphasizes data matching, reflecting the system's capability to access most relevant data.