Taxability of interest accrued on the Kisan Vikas Patras
Kisan Vikas Patras were introduced on 1st April, 1988. The Department of Economic Affairs, Ministry of Finance, in its notifications dated 23-3-1988, 16-12-1991, 24-4-1992 and 2-9-1993 had specified the amount payable on these after 2½ years and up to the date of maturity. However, interest and maturity amount during 2½ years had not been provided in these notifications.
2. As interest on these Patras has to be assessed to income-tax on accrual basis, the amount of interest accrued on these Patras during initial 2½ years has also been determined in consultation with the Department of Economic Affairs. The amount of interest accrued on investment in Kisan Vikas Patras by an assessee is to be calculated on the basis of the following table received from the Department of Economic Affairs wherein rate of interest and maturity amount for Rs. 100 denomination of Kisan Vikas Patras are given :
|
Period from the date of certificate to the date of its
Encashment
|
Purchased from 1-4-1988 to
15-12-1991
|
Purchased from
16-12-1991 to
23-4-1992
|
Purchased from
24-4-1992 to
1-9-1993
|
Purchased from
2-9-1993
|
|
Rate of interest
|
Maturity value
|
Rate of interest
|
Maturity value
|
Rate of Interest
|
Maturity value
|
Rate of Interest
|
Maturity value
|
|||||||
| (Notification
dated
23-3-1988)
|
(Notification dated
16-12-1991)
|
(Notification dated
24-4-1992)
|
(Notification dated
2-9-1993)
|
|||||||||||
|
(1) 1 Year
|
10
|
1,100
|
12
|
1,120
|
12
|
1,120
|
11
|
1,110
|
|
(2) 2 Years
|
10
|
1,220
|
12
|
1,260
|
12
|
1,260
|
11
|
1,240
|
|
(3) 2 Years & 6 Months
|
10
|
1,280
|
12
|
1,340
|
12
|
1,340
|
11
|
1,310
|
|
(4) 3 Years
|
11
|
1,380
|
13
|
1,460
|
13
|
1,460
|
12
|
1,420
|
|
(5) 3 Years & 6 Months
|
11
|
1,450
|
13
|
1,550
|
13
|
1,550
|
12
|
1,500
|
|
(6) 4 Years
|
12
|
1,590
|
13.5
|
1,690
|
13.5
|
1,690
|
12.5
|
1,620
|
|
(7) 4 Years & 6 Months
|
12
|
1,690
|
13.5
|
1,800
|
13.5
|
1,800
|
12.5
|
1,730
|
|
(8) 5 Years
|
13
|
1,880
|
13.75
|
1,940
|
—
|
2,000
|
12.75
|
1,860
|
|
(9) 5 Years & 6 Months
|
—
|
2,000
|
—
|
2,100
|
—
|
—
|
—
|
2,000
|
Note : Maturity values cited are calculated on half-yearly compounding basis based on the rate of interest cited.
Circular : No. 687, dated 19-8-1994.
