Tax treatment of MIS & KVP

KVP & MIS income should be added every year (u/h other sources) on the basis of calculation of interest for the year.

This calculation is available in almost all the softwares used for e - filing income tax return & if it's not available then you can get the method to calculate interest on www.incometaxindiaefiling.gov.in

Furthur if the policy is matured in current year and interest amt was never shown before in other income then all the gaining amount will be taxable in current year (i.e Maturity Amount - Amount Invested)

Mr Dhreej is right.

Thanks for replying Dheeraj jee..Interest Amount has been added to the taxable income every year..

So, now the matured amount should not be added to the taxable income..?? Am I right..???

Yes..!!

only the interest amount is to be added back to the income... and not the principal since the principal is just the basic amount of earning revenue....

Thanks Karan jee...

Originally posted by : Karan Teli
	Yes..!! only the interest amount is to be added back to the income... and not the principal since the principal is just the basic amount of earning revenue....

AGREED 

can we show the matured amount under the head of exempted income (if current years interest shown)

In case of filing the INCOME TAX RETURN FIRST TIME.??

                              OR

or Please guid me the treatment of KVP matured