How is KVP taxed at the time of redemption?

In 2021, I bought Kisan Vikas Patra for ₹ 20 lakh. Hence, if cash basis is regularly adopted, interest from Kisan Vikas Patra may be offered to tax in the year of its maturity. If mercantile basis is regularly adopted, the interest should be offered to tax every year on an accrual basis. In the instant case, you have opted to offer to tax the interest income earned from KVP on mercantile basis, which is presumably the regular system of accounting followed by you, in accordance with the above provisions. In case of any inquiry about the mismatch of the interest income appearing in the AIS in the year of maturity vis-à-vis the interest income offered to tax in that year, the same may be explained on the basis of a reconciliation of the accrued amount offered to tax in past years’ tax return and necessary documentary evidence.