I am aware from earlier discussions in this forum that in KVP, on maturation, the deposit (principal) is tax-free and that the interest is taxed. I also know that it is up to the receiver to pay the taxes on the interest, since no TDS is charged.
I want to know at what rate is the income tax charged on the interest? Must be at TDS rates, is it not?
Also, while filing the tax return, the KVP principal and the tax deducted interest should be entered in the schedule EI (exempt income) column of the ITR2 form?
CAclubindia
