https://www.taxtmi.com/caselaws?id=243872 Interest on Kisan Vikas Patras was treated as accruing over time under the governing rules, which allowed encashment on maturity and, after the prescribed lock-in period, even before full maturity. On that basis, the return from the certificates was not viewed as a deferred lump sum payable only at maturity, and the departmental circular also required assessment on accrual basis. The contention that the certificates should be regarded as a capital asset, with taxation deferred until maturity and indexation allowed, was rejected. The operative tax treatment was therefore accrual-based taxation of the interest, not deferred taxation on maturity. en-us Mon, 27 Jan 2014 00:00:00 +0530 Wed, 12 Feb 2014 15:10:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=243872 Interest on Kisan Vikas Patras was treated as accruing over time under the governing rules, which allowed encashment on maturity and, after the prescribed lock-in period, even before full maturity. On that basis, the return from the certificates was not viewed as a deferred lump sum payable only at maturity, and the departmental circular also required assessment on accrual basis. The contention that the certificates should be regarded as a capital asset, with taxation deferred until maturity and indexation allowed, was rejected. The operative tax treatment was therefore accrual-based taxation of the interest, not deferred taxation on maturity. Case-Laws Income Tax Mon, 27 Jan 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=243872