TDS on maturity for KVP

[sunny23m]

Oh cool. Thank you.
Then i can just open a NRO account and deposit money in there.

Just curious, how come there is no tax on the interest earned on KVP?

Bank won't deduct any TDS on KVP amount. KVP money cannot be repatriated and hence will be required to be deposited in an NRO account. If you don't have the NRO account but have had an savings account than, your existing savings account will be required to be converted into an NRO account, further to which you can deposit the funds in the account.

[sunny23m]

Nevermind, found the answer. Tax is payable on the interest earned however no TDS.

Oh cool. Thank you.
Then i can just open a NRO account and deposit money in there.

Just curious, how come there is no tax on the interest earned on KVP?