Kisan Vikas Patra (KVP) interest income can present tax challenges at maturity due to the entire amount being reflected in a single year. Tax laws permit offering income, including KVP interest, on either an accrual or receipt basis. Experts advise that taxpayers could have opted for the accrual method annually to avoid a large tax liability upon maturity. If the accrual method was consistently followed, only the current year's attributable interest needs to be declared. Mismatches with tax department reports may arise if the receipt basis is used.