KVP Maturity Income

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A client's Kisan Vikas Patra (KVP) investment of 9 Lakh INR matured to 18 Lakh INR, with 9 Lakh INR shown as interest on their AIS. The concern is how to declare this substantial interest income in the 2024-25 Income Tax Return (ITR) to avoid a large tax bill, especially since the interest wasn't declared on an accrual basis annually. The advice given is to declare the entire interest in the final year if it wasn't declared progressively.

Javed Memon

Javed Memon (Querist)
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09 July 2024 My Client invested in KVP Amount Something 9 Lkah Rs (Kisan Vikas Patra ) Kvp Matured in 2023-24
Maturity amount is KVP 18 Lakh Rs. 9 Lakh Rs. Interest Shown in AIS

My question is Interest Received 9 Lakh rs. is for 9 Years . if i show this interest income as per AIS in ITR . Client have to Pay Huge Tax in 2024-25 Return .
So how to Show this Interest income in A.Y. 2024-25 ??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 July 2024 The interest is to be declared on accrual basis every year. So, if the interest was declared proportionately in preceding years, declare only final year's interest in current year.

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Javed Memon

Javed Memon (Querist)
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10 July 2024 But Sir, it didn't declared accrual basis every year . Now what's the solution?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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10 July 2024 In that case you will be required to declare it totally in final year.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 August 2024 You are welcome.

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