Hey Friend,
To answer your query, is KVP taxable? I would like to highlight that no tax exemptions apply to interest collected on Kisan Vikas Patra (KVP). When redeemed, the interest is taxed according to the investor's applicable income tax bracket. Accordingly, an investor in the highest tax bracket will pay 30% tax on the KVP return. Additionally, 10% of the interest received would be subtracted as source-taxed income (TDS).
Use the NoBroker EMI calculator to determine your monthly mortgage payment (EMI) for a house loan. Get a stress-free home loan disbursement by using NoBroker's house loan services.You can choose to buy a Kisan Vikas Patra certificate online for a minimum payment of Rs. 1000. The amount is unrestricted. In 100 months, or 8 years and 4 months, the money invested in the certificate's purchase will have doubled.
This programme was initially presented in 1988. Nevertheless, the Indian government established a commission, headed by Shayamla Gopinath, that made the recommendation that the KVP might be misused. Following this recommendation, Kisan Vikas Patra was shut down in 2011. KVP was reopened in 2014 under the new administration, which decided to revive this programme.
When questions like, is KVP interest taxable? I would like to say that interest from the Kisan Vikas Patra (KVP) may be taxed in the year of its maturity or premature encashment if the taxpayer uses the "cash basis" of accounting. The same will be taxed at the appropriate slab rates for that particular year.
However, if the taxpayer uses the "accrual basis" of accounting, accrued interest must be calculated for each year based on the current interest rate and is subject to taxation at the corresponding slab rates for those years. I hope this clarifies your query about whether interest on KVP is taxable or not.
Is KVP maturity amount taxable?
The returns are entirely taxable, and it is not eligible for 80C deductions. However, withdrawals made after the maturity period are not subject to Tax Deducted at Source (TDS).
I would like to conclude here about your query, is KVP taxable. I hope this helps:)
Read More:
What are Tax Saving FD and Normal FD Options? How to buy Kisan Vikas Patra online? What is the interest rate of Kisan Vikas Patra?
Is KVP Taxable?
pratima
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2022-08-22T19:29:09+00:00 2022-08-22T19:29:10+00:00Comment
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