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Post office KVP income.

755 views 3 replies

ashok oza

287 Points Posted on 16 June 2026

My Kisan Vikas Patra matured in F.Y. 2025-26. ITax website shows ALL the interest in F.Y. 25-26, jacking up my "Income from Other Source" , and thereby tax liabilities. After buying Vikas Patra, I have been adding accrued interest (Not realised) income to my "Income from Other Sources" , in my previous years ITR filings. How do I deal with this issue, while filing my F.Y. 25-26 ITR??

Replies (3)

Quick Summary

A taxpayer whose Kisan Vikas Patra matured in FY 2025-26 finds that the Income Tax portal reflects the entire interest at maturity, despite annual accrual interest already being offered to tax in earlier years. The discussion focuses on avoiding double taxation and preparing a reconciliation statement.

Aashok FC Advisory

Finance Compliance Consultant

1116 Points Posted on 16 June 2026

To avoid paying tax twice on your KVP interest, do not declare the total maturity interest in your current ITR. Instead, calculate the interest that pertains specifically to the current financial year by subtracting the interest you have already declared in previous years from the total interest received at maturity. Report only this difference as "Income from Other Sources" and keep a detailed reconciliation statement as proof for your records.

ashok oza

287 Points Posted on 16 June 2026

Thanks for your reply. But, according to your suggestion my declared income figure from Other Sources will be much less than the pre-filled income figure from Other Sources in my ITR this year. Is this okay? Also, request you to enlighten me as to the preparation of (details) of "Reconciliation statement", you have suggested. I've kept (declared )year by year KVP interest accruals in my previous ITRs. Thanks once again.