Hi,
The accured interest on Kissan Vikas Patra(KVP) is calculated after two and half years of its purchase.Does it mean that if a person has purchased KVP, then only after two and half years one has to add KVP interest income for calculating his total taxable income ? If yes, then a KVP purchase on 16/4/2010 how do I calculate tax payable for the financial year 2012-2013?
No tax benefit under income tax act for investment in KVP and also the interest accrued on it. As per available information on web interest on KVP is at 8% compounded semi annually. Therefore tax liability on interest income should be calculated every year as interest accures every year
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