How to Fill Schedule OS in ITR for Interest and Dividend Income
- Nimisha Panda
- Dec 10
- 9 min read
Schedule OS in the Income Tax Return is the section where interest income and dividend income must be disclosed for accurate tax reporting. Every taxpayer earning from savings accounts, fixed deposits, recurring deposits, listed shares, or mutual funds is required to report this income under the “Other Sources” category. The Income Tax Department uses this schedule to match disclosures with Form 26AS, AIS, and AIS dividend data, making correct filing essential for avoiding notices. Understanding how to enter gross income, TDS details, quarterly dividend breakup, and foreign income ensures an error-free return for FY 2024-25.
Table of Contents
Understanding Schedule OS in ITR for FY 2024-25
Schedule OS is the section of the Income Tax Return where all income that does not fall under salary, house property, business, or capital gains is reported. This schedule captures interest income, dividend income, winnings, gifts, family pension, and other miscellaneous receipts. Every taxpayer must ensure that the income reported here matches the details reflected in AIS and Form 26AS to avoid discrepancies or notices. Schedule OS helps the Income Tax Department understand the full picture of a taxpayer’s financial receipts beyond primary sources.
Who Should Fill Schedule OS for Interest and Dividend Income?
Any taxpayer who has earned interest from savings accounts, fixed deposits, recurring deposits, bonds, or corporate deposits must fill Schedule OS. Those receiving dividends from shares, mutual funds, or foreign companies must also disclose them here. Even taxpayers with small amounts of interest income must report it. Anyone having winnings, lottery income, gift income, rent from sub-letting, or family pension also needs to fill this schedule.
Locating Schedule OS in ITR Forms (ITR-1, ITR-2, ITR-3)
Schedule OS appears automatically in the ITR form based on the ITR type you select. • In ITR-1, Schedule OS is limited to reporting interest and family pension. • In ITR-2, Schedule OS includes interest, dividends, gifts, winnings, and other income. • In ITR-3, it is available for those declaring business income along with other income. The schedule is located under "Income Details" or "Computation of Total Income" depending on the filing platform used.
How to Fill Schedule OS for Interest Income
Interest income must be reported gross, meaning before deducting any TDS or charges. Choose the appropriate category such as savings account interest, FD/RD interest, bond interest, or interest from other deposits. Enter the amount received for the financial year. If banks have deducted TDS, ensure those entries match TDS details in Form 26AS or AIS. Interest from recurring deposits and corporate bonds is fully taxable, so accurate reporting is essential.
How to Fill Schedule OS for Dividend Income
Dividend income must be disclosed separately as domestic dividend or foreign dividend. Domestic dividends are fully taxable and must be reported gross, even if the company deducted TDS under Section 194. For foreign dividends, the amount received in India must be converted into INR. Dividend income is taxed at slab rates, and quarterly breakup may be required if advance tax interest under Section 234C applies.
Reporting Gross Income and TDS in Schedule OS
Gross income refers to the full amount received before subtracting TDS or expenses. TDS details must be entered separately under Schedule TDS2. For example, if a bank pays ₹10,000 interest and deducts ₹1,000 TDS, you must report ₹10,000 as income and claim ₹1,000 under TDS. This ensures proper credit during tax computation and avoids refund mismatch issues.
Quarter-Wise Dividend Breakup and Section 234C Rules
Dividend income requires quarterly classification if the taxpayer needs to calculate interest under Section 234C for short payment of advance tax. Dividend income is generally exempt from advance tax penalty if it is unexpected, but once received, it must be considered for remaining installments. Entering quarter-wise breakup also ensures correct interest computation by the ITR system.
Taxability of Interest and Dividend Income Under the Income Tax Act
Interest income from all sources—savings, deposits, bonds—is fully taxable at slab rates. Savings account interest up to ₹10,000 can be claimed as a deduction under Section 80TTA, but taxable income must still be reported first. Dividend income, whether from listed companies or mutual funds, is also fully taxable at slab rates. Foreign dividends are taxable without exemption, though foreign tax credit may be available depending on DTAA.
Reporting Foreign Dividend or Interest Income in Schedule OS
Foreign income must be converted into INR using the SBI TT buying rate applicable on the date of receipt. The income should be entered under the category for “Income from Other Sources – Others”. If tax was paid abroad, details must be entered under the Foreign Tax Credit schedule. Proper documentation is essential to avoid mismatch with FATCA/CRS data.
Documents Required to Accurately Fill Schedule OS
Key documents include bank statements, FD/RD interest certificates, bond interest statements, dividend statements from brokers, mutual fund CAS (Consolidated Account Statement), gift deeds for high-value gifts, and Form 26AS/AIS/TIS. These documents ensure accurate reporting without relying on assumptions. Taxpayers should cross-check figures with AIS, as the Income Tax Department uses this data for verification.
Common Filing Errors and How to Avoid ITR Notices
Common errors made while filing income tax returns are often small but can create major complications later, including receiving notices from the Income Tax Department. One of the most frequent issues is reporting net interest instead of gross interest. Banks deduct TDS from interest income, and taxpayers sometimes declare only the post-TDS amount, which leads to mismatches with AIS and Form 26AS where the gross amount is reported. Another common problem is missing foreign income, especially for individuals with overseas accounts, freelance payments, or foreign investments. Even small earnings must be declared, and failure to do so can trigger scrutiny.
Dividend income also causes confusion for many taxpayers. Some mistakenly classify it under capital gains instead of “Income from Other Sources.” Additionally, dividend payments received throughout the year may not be broken down by quarter. Since interest under Section 234C depends on when the dividend is received, failing to provide quarterly details often results in incorrect interest calculations and system-generated notices.
Another frequent mistake is ignoring the TDS entries related to dividends or interest income. AIS reflects all TDS entries reported by companies and banks, and any mismatch between your ITR and AIS may lead to your return being flagged. Some taxpayers also forget to include income from savings accounts, sweep-in FD interest, recurring deposits, or small digital-wallet-linked interest, all of which must be declared.
Reporting mistakes also happen when taxpayers wrongly enter exempt income, forget to report gifts taxable under Section 56, or misreport family pension under the wrong head. These errors may not only reduce eligible deductions but can also create discrepancies that trigger notices.
Using a reliable tax-filing platform like TaxBuddy helps prevent most of these issues. With automated data checks, AIS reconciliation, and guided prompts, TaxBuddy ensures that interest, dividend income, TDS credit, and quarterly breakups are accurately captured. This reduces the likelihood of mistakes and helps taxpayers file a clean, compliant return without worrying about mismatches or system-generated notices.
Verification, e-Filing, and Submission Steps
After filling Schedule OS and other schedules, verify all entries and ensure that income totals match Form 26AS and AIS. Complete e-verification through Aadhaar OTP, net banking, or Demat verification. Returns must be verified within the prescribed timeline to avoid invalidation. The Income Tax Department will process the return, match reported data with AIS, and issue refunds where applicable.
Conclusion
Accurately reporting income in Schedule OS is essential for ensuring the smooth processing of your tax return. With increasing data matching through AIS and TIS, even small oversights can lead to notices or delays. Using structured documentation and correct reporting methods keeps your filing compliant and error-free. TaxBuddy offers guided ITR filing with automated checks, helping taxpayers report interest, dividends, and other income correctly.
FAQs
Q1. Where exactly do I enter interest income in the ITR form? Interest earned from savings accounts, fixed deposits, recurring deposits, NSC, and bonds must be reported under Schedule OS (Income from Other Sources) in the ITR form. Savings account interest is also eligible for deduction under Section 80TTA or 80TTB, but it must still be fully reported first in Schedule OS. Banks report interest in Form 26AS and AIS, so the numbers entered in Schedule OS should match these records to avoid mismatches or notices.
Q2. What if I have received dividends from both Indian and foreign companies? Dividend income from Indian companies and foreign companies must be reported together under Schedule OS. However, foreign dividends have two additional requirements:
They must be converted into INR at the prescribed exchange rate.
If foreign shares or ESOPs are held, disclosure in Schedule FA (Foreign Assets) is mandatory. Taxpayers may also be eligible for foreign tax credit if tax was deducted abroad, which should be claimed through Form 67.
Q3. How to handle quarter-wise breakup of dividend income in Schedule OS? Schedule OS requires a quarter-wise breakup of dividend income to calculate interest liability under Section 234C related to advance tax. Dividend income is taxable on receipt basis, so each quarter must reflect the date on which the dividend was credited. Accurate quarterly reporting ensures correct computation of advance tax and prevents unnecessary interest charges.
Q4. What should I do if TDS on dividend income does not match Form 26AS? When the TDS appearing in AIS or Form 26AS does not match the TDS shown in your broker statement or dividend summary, the first step is to check for errors in PAN reporting by the dividend payer. If the mismatch persists, the deductor (company or RTA) must be contacted to revise the TDS return. Only after correction will the updated TDS reflect in Form 26AS. Filing without resolving mismatches may lead to denial of credit during processing.
Q5. Does the TaxBuddy mobile app assist in filling Schedule OS for income from other sources? Yes. The TaxBuddy mobile app guides users through each field of Schedule OS, auto-identifies eligible incomes such as interest, dividends, winnings, and family pension, and validates them with AIS and Form 26AS. It ensures correct tax treatment, applies allowable deductions under Section 57 wherever applicable, and prevents data-entry mistakes.
Q6. How do I report winnings from lotteries, games, or online gaming platforms? Winnings must be reported under Schedule OS at the gross amount (before TDS). These incomes are taxed at a flat rate of 30% under Section 115BB without any deductions. If TDS of 30% was already deducted by the gaming platform, it will appear in Form 26AS/TIS and must be claimed under Schedule TDS2 to receive credit.
Q7. How is family pension taxed under 'Income from Other Sources'? Family pension is taxable under Section 56(iii) as “Income from Other Sources.” A standard deduction is available:
One-third of the pension amount, or
₹15,000, whichever is lower. The remaining amount is taxed as income at slab rates. Family pension must be correctly disclosed in Schedule OS with the deduction claimed under Section 57.
Q8. Can I claim expenses against dividend or interest income under Section 57? Reasonable expenses incurred to earn dividend or interest income—such as commission or collection charges—can be claimed under Section 57. However, interest expenses on borrowing to invest in shares or mutual funds are capped at 20% of the dividend income received. Deductions cannot be claimed for personal expenses or capital expenses.
Q9. How do I report income from gifts received during the year? Gifts received in cash, property, or other assets exceeding ₹50,000 from non-relatives are taxable under “Income from Other Sources.” Gifts from relatives, on marriage, through inheritance, or under a will are exempt. The taxable value must be reported in Schedule OS, and property gifts require valuation based on stamp duty value.
Q10. What if my AIS shows more interest or dividend income than I actually received? Sometimes AIS reflects cumulative data reported by banks or brokers, including entries like reversals or accruals. The correct approach is to:
Cross-check with bank statements or broker statements.
Mark incorrect entries as “Information is not fully correct” while providing the correct value.
File the return using actual income received or accrued as per tax rules. AIS mismatches can trigger notices, so every discrepancy must be addressed.
Q11. How do I report income from Other Sources in ITR-1 vs ITR-2?
ITR-1 allows reporting only the following under “Income from Other Sources”:
Interest income
Dividend income
Family pension
Other small incomes (excluding lotteries)
ITR-2 must be used when incomes include:
Lottery, game show, or online winnings
Gifts taxable under Section 56
Foreign dividends
Multiple house properties
Capital gains
Choosing the correct form ensures proper computation and avoids defective return notices.
Q12. What happens if I fail to report income from Other Sources or mismatches appear in AIS? Non-reporting of income or mismatches with AIS/Form 26AS can result in:
Intimation under Section 143(1) with tax demand
Notices under Section 139(9) for defective return
Scrutiny under Section 143(2)
Penalties and interest for underreporting
Delay in refund processing
Using a platform like TaxBuddy helps prevent these issues through automated AIS checks and expert review before filing.
