Kvp seized by income tax department
shanthi
(Querist) 15 June 2013
This query is : Resolved
During the process of scrutiny some of KVP's were seized by income tax department. The KVP's were matured during the period when it was in the custody of IT department. So it could not be renewed. Now when the case is in our favour we got our KVP's but the bank is not providing us with interest from date of maturity to the date of receipt of amount. We should be entitled to interest as kvp was not in our custody so we could not renew it.
Kindly inform me what does law say regarding the above case as i believe we should be entitled to interest.
Rajendra K Goyal
(Expert) 15 June 2013
I doubt that the KVP were issued by the Bank. KVP were issued by post office. It is for fix period and should have been presented for encashment on due date. No fault of Post Office if not presented on due date. The fault was of ITax department. if there is procedure for overdue interest than it can be paid.
Raj Kumar Makkad
(Expert) 26 June 2013
KVP can be got encashed on its presentation before the concerned post office. The delay is not attributed to IT department rather it can be got released from IT department on submission of indemnity bond.
shanthi
(Querist) 01 July 2013
Thank u for ur reply.
Nw what is the procedure to get interest from IT Department?
Rajendra K Goyal
(Expert) 01 July 2013
As advised by the expert Sh. Raj Kumar Makkad Ji "The delay is not attributed to IT department rather it can be got released from IT department on submission of indemnity bond."
Since you have not availed the opportunity of releasing of KVP on indemnity bond, IT may deny payment of interest.
