Dario Dias (None) (63 Points)
24 August 2010Hi,
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?
Ashok J
(CA Final)
(880 Points)
Replied 24 August 2010
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
LIVE Course on Foreign Exchange Management Act (FEMA)(with recording)
LIVE Course on Foreign Exchange Management Act (FEMA)(without recording)
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