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Avoid Yearly Accrued Interest and Pay on Maturity

Tax queries 1272 views 3 replies

I have invested in the Post Office Scheme of Kisan Vikas Patra and NSC with a maturity of 10 years and 5 years, respectively. T

My CA says that I have to pay tax yearly on accrued interest as it gets reflected automatically in portal (something like that) I want to avoid that as I'm in higher slabs.

I want to pay tax on maturity after 5 and 10 years. 

Is this possible, and what is the way to do that?

Replies (3)
Generally, there is a table to calculate int on NSC ( yearly intrest) and that int to be added in that FY
as per post office...NSC int for all 5 yrs will be credited just 12 hrs before maturity date and u will recive sms for that
as int is paid on maturity date....that int amt for collective 5 yrs will be reflected in AIS in maturity year only
Now,
we have option to either pay total tax on total int at maturity
or
generally, practice is to pay tax on int yearly as calculated in NSC int chart
both ways are OK
KVP is generally taxed on accural basis

When I checked my AIS form, I see that the details of my Post Office Savings Account & Time Deposit were there. But KVP and NSC-related details were not present.

In such a case, can I pay tax on the total interest of KVP and NSC whenever the policy matures?

Is there a rule where we have to pay tax for KVP on accrual basis and NSC on maturity?

Dear Sir ,

I had a KVP which got matured in 2023-24 and I received 2 lakhs interest in approx. 10 years. I have always reported accrued interest while filing all previous ITRs.

I have also raised the feedback in AIS but selected the option of "Information relates to other PAN/ Year" and included KVP interest for each FY starting from 2016-17 to 2023-24. However, they rejected the feedback "POSTMASTER gave feedback that "ASSESSE FEEDBACK IS INCORRECT"

In this situation, what i should do?

Has anyone gone through this process

Kindly contact pramiz @ gmail.com


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