Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 469 - HC - Income TaxAccrual of income on Kisan Vikas Patra - Rectification of error apparent on record Promissory note OR not - Held that:- The Tribunal was correct in confirming the opinion that the KVP did not amount to a promissory note and which, at the end of the period, the authority promise to pay a fixed sum of money only - It was a case where even premature exit from the scheme was permissible - After completion of two years and six months from the date of issuance of the certificate, the investor could withdraw his investment at the rate of return specified in the rules. The authorities correctly relied on Circular No. 687 dated 19th August 1994 in which it was stated that, the interest on Kisaan Vikas Patras has to be assessed to income tax on accrual basis, the amount of interest accrued on these patras during initial two and half years has to be determined in consultation with the department of Economic Affairs - The amount of interest accrued on investment in Kisaan Vikas Patra by an assessee is to be calculated on the basis of the table received from the Department of Economic Affairs wherein rates of interest and maturity amount for Rs. 1000 denomination of Kisaan Vikas Patra are given Thus, the authorities correctly recorded that the assessee was entitled to encash KVPs after two years and six months and the period was over Decided against Assessee.
|