In this article, we will discuss only about how to calculate the accrued interest on Kisan Vikas Patras. If anyone wants to know about nomination, maturity value, maturity period, encashment, premature encashment go to the KISAN VIKAS PATRAS main article.
Note: Kisan Vikas Patras (KVPs) have discontinued w.e.f 1.12.2011
The following chart will help you to calculate accrued interest on Kisan Vikas Patra. It will help you also to calculate deduction u/80C. Know more about deduction u/s 80C here.
The amount of interest accrued on KVPs of denomination Rs.1000, issued on or after 1.3.2013 is as follows:
Post-maturity interest: If the amount on maturity is not paid then it shall carry interest from the date of maturity upto date of repayment. The interest will be payable at POSB A/c rate. The assesse can also get benefit for non-deduction of TDS on Kisan Vikas Patra on maturity or otherwise.
The following chart will help you to understand the amount payable on Premature Encashment. The premature encashment is allowed after 2 ½ years. So the following table will calculate the amount payable for a certificate of Rs.1000 denomination, issued on or after 1.3.2003, on encashment after 2 ½ years.
|Completed Period||Amount Payable||Completed Period||Amount Payable|