Many thanks once again!
First off, It is great to know that I don't have to amend the returns for the past years. In which case -
1) These KVP investments were made in my and my spouse's name (issue type is joint). So should we distribute the interest income on both our returns?
2) Should we be paying penalty on the late payment of taxes for the KVP interest accrued in the past three financial years (2010-2011, 2011-2012, and 2012-2013)? From what I understand from your reply above, it seems that you are implying that we should just declare interest income as if it was all accrued in this year, and then pay the tax on it. If that is the case, then there is no penalty to talk of, correct? Please confirm.
3) Just like there is a time limit on filing a revised return, is there a time limit on auditing a submitted return? For instance, how long back in time can IT-Dept go to make their claims? In the US, for instance, as per the statute of limitations, the IRS cannot audit a return after 3 years of its filing. In other words, it has three years to make its claim. Do we have similar such statute in India?
Once again, truly appreciative of your advise given so freely.