How to Report NSC and KVP Interest in ITR

Investors in India often choose government-backed savings schemes like the National Savings Certificate (NSC) and Kisan Vikas Patra (KVP) for stable returns.

Both schemes offer interest that is taxable under 'Income from Other Sources' in the Income Tax Return (ITR).

However, NSC has a special tax benefit under the old tax regime where the interest is deemed reinvested, making it eligible for a deduction under Section 80C.

KVP, on the other hand, does not offer this benefit.

As of July 2026, NSC offers an annual interest rate of 7.7%, while KVP offers 7.5% with a maturity period of 115 months.

It is important for investors to report their interest income correctly to avoid any issues with tax authorities.