Correction in ais

Correction in ais

i purchased 5 lacs kisan vikas patra 10 years back

they were redeemed for double the amount in july 2024 i.e. 10 lacs, 5 lacs principal and 5 lacs interest.

in the scheme interest is compounded annually @ 7.5 percent thus doubling in 7 years and 8 months

in 'ais' the entire interest of rs. 5 lacs is shown as if accrued in f.y. 2024-25 whereas the actual interest accrued in 2024-25 is only for the period april '24 to june '24 that is for 3 months

i wish to correct the 'ais' before filing

what is the best course, pl advise

Asked 7 days ago in Income Tax

I understand the issue — this happens quite often with long-term fixed-income instruments like Kisan Vikas Patra (KVP) because in AIS/26AS, the entire accumulated interest gets reported in the year of maturity, even though it actually accrued over several years.

Here’s how you can address it properly before filing your ITR:

1. Understand the Reporting Mistake

Actual position: Interest of ₹5 lakh accrued gradually over 10 years (compounded annually at 7.5%), not just in FY 2024–25.

AIS position: The entire ₹5 lakh is shown as interest income in FY 2024–25 because redemption happened in July 2024.

Problem: If you accept AIS as-is, your FY 2024–25 taxable income will be overstated and will show a mismatch with reality.

2. Options for Correction

Option A – Submit AIS Feedback

Log into the Income Tax e-filing portal → go to AIS → AIS Feedback.

For the interest entry, select:

Feedback type: “Information is partially correct”

Mention in remarks:

"This KVP interest is cumulative over 10 years. Interest pertains to multiple previous financial years. For FY 2024–25, only interest from April 2024 to June 2024 is taxable; balance pertains to earlier years."

State the actual interest for April–June 2024 (around 3 months at 7.5% p.a. on ₹9.75–10 lakh principal base).

Option B – Adjust in ITR Computation

Even if AIS is not corrected immediately:

In your ITR under ‘Income from Other Sources’, declare only interest for April–June 2024 as taxable for FY 2024–25.

In the "Schedule OS" remarks or computation note, explain that the balance interest relates to prior years and has already been accrued earlier.

Keep a detailed working of year-wise accrual for records in case the department queries it.

Damini Agarwal

CA, Bangalore, Bengaluru

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Talk to Damini Agarwal

my pan is 
AAAPG6268P
password
lalitgupta1!

can you make the AIS feedback and subsequently file my return on my behalf or help me to do so myself.

i can provide you the date of purchase, principal amount, date of redemption , redemption amount(double of the principal amount) of the KVPs.

the opening balance on 01/04/2025 will be principal amount plus 7.5 percent compounded annually and the interest chargeable to income fir f,y. 2024-25 will be for the balance three months

for example
kvp amount 50,000
date of purchase 01/12/2015
date of redemption 01/07/2025 ( 9 years 7 months)
redemption amount 1,00,000
total interest earned 50,000
opening balance on 01/04/2025
(principal +interest) 50,000+47,964
interest earned in f.y. [deleted],000-47,964 i.e. 2,036

all the rest of the information needed for the return is already entered by me and you will be able to see ti when you open the PAN ID.

I would also like you to help me in case there is a tax notice even after the above is taken care of

PL give me breakup what will you charge me
A) IMMEDIATELY UPTO FILING THE RETURN
B) TO HANDLE THE NOTICE IF IT COMES

Asked 6 days ago

Raise AIS feedback: mark the ₹5 L interest entry as “Not Fully Correct” and request it be updated to three months’ interest, attaching a brief calculation.