Kisan Vikas Patra Scheme (KVP): Kisan Vikas Patra (KVP) scheme is a famous savings scheme. The Government of India is running nine Small Saving Schemes across the country. In which Kisan Vikas Patra is also included.
Kisan Vikas Patra will be available to you in the form of a certificate in all post office branches and select banks across the country. Before investing in this scheme, you need to know some important things. This is a lump sum investment scheme. In which your money doubles after a period.
Let us inform that initially this scheme was started for farmers but now KVP certificate is available for all. In this scheme, your money is safe and you also get an attractive interest rate. Due to these, this scheme is very famous. Below you have been given all the information about Kisan Vikas Patra.
Features of the account of Kisan Vikas Patra Scheme:-
1. Kisan Vikas Patra Yojana is one of the 9 small savings schemes offered by the post office.
2. Your money will always be safe in this scheme. This is a government supported instrument.
3. In this you are guaranteed returns. In this scheme, the interest rate and tenure are decided in advance.
4. The certificate can be purchased by an adult for himself or for a minor or by two adults.
5. You can buy this certificate from any post office branch across India.
6. Investment in Kisan Vikas Patra is available in denominations of Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000.
7. The facility of enrollment is also available under this scheme.
Interest Rates for Kisan Vikas Patra Scheme
The interest rate (KVP Interest Rate) applicable on Kisan Vikas Patra from 1st April 2020 is 6.9% compounded annually. You will get more returns by investing in this scheme. The amount invested under this scheme doubles in 124 months i.e. in 10 years 4 months.
How to invest in Kisan Vikas Patra Scheme?
You will not have to face any problems for investing in Kisan Vikas Patra Scheme. It is very easy to invest in it. Let us tell you that at present the process of investing in KVP is offline only. You will have to take Form A from the post office or bank or you can download this form online to invest. To buy a KVP certificate, you have to fill the form and submit it to the bank or post office. If you are investing through an agent, your Form A1 will be filled by the agent.
For your information, let us tell you that for the KYC process, you will have to submit an ID proof copy (PAN, Aadhaar, Voter ID, Passport or Driving License). You will be given a certificate once the verification is complete and the payment is done. One more important thing to mention is that you have to keep the certificate carefully as you will need it while redeeming on maturity.
Minimum and maximum amount required to open an account
You can choose to invest any amount in the Kisan Vikas Patra account in multiples of Rs 1000. Please note that there is no maximum limit on the amount that can be invested Rs.
Tax benefits under Kisan Vikas Patra Account
Investment in KVP (Kisan Vikas Patra Yojana) does not come under section 80C deduction. The interest earned in this is fully taxable. However, there is no TDS for Kisan Vikas Patra.
Should I invest in Kisan Vikas Patra?
For your information, let us tell you that Kisan Vikas Patra Yojana is a famous savings scheme. In this your money is safe and you are given guaranteed returns. Let us tell you that the tenure of KVP is fixed and you are not allowed to choose the tenure of your choice.
