If one wants to invest in such options, where there is no risk, good returns and money is safe, then post office will be the best. There are many post office schemes, one of which is such that your money will be double guaranteed. This is Kisan Vikas Patra. Kisan Vikas Patra (KVP) is a certificate scheme of the post office. If you buy this certificate by 30 September 2021, the lump sum investment amount you invest will double over a period of 10 years and 4 months (124 months). For example if you invest Rs 5000 then you will get Rs 10000 on maturity.
Money will double guaranteed
As we mentioned that Kisan Vikas Patra will double your money guaranteed in 124 months. But what is its math? Actually, at present, 6.9 percent interest rate is offered on KVP. With such an interest rate, you get the benefit of compounding on investment, which doubles your money in 124 months. Let us inform that 4 years ago the interest rate on KVP was 7.8 percent. Then the money would have doubled in 110 months.
Annual profit of Rs 1 lakh
Now let us tell you how one can earn a profit of Rs 1 lakh every year by investing in KVP. Actually, if you invest Rs 10 lakh in KVP together, then after 124 months your investment amount will be Rs 20 lakh. That is, you will get a profit of only Rs 10 lakh in 10 years and a few months. This means around Rs 1 lakh per year. Keep in mind that you will get the investment money and the profit amount together on maturity.
Rules for investing Rs 10 lakh
KVP You cannot invest 10 lakhs like this all at once. In fact, to curb the possibilities of money laundering, the government had made PAN card mandatory in 2014 for investments above Rs 50,000. If you want to invest Rs 10 lakh or more then you will have to submit income proof (salary slip, bank details, ITR documents etc.). It is a zero risk savings option where you can keep your money safely for a fixed period.
Base is essential
It is mandatory to submit Aadhaar as a proof of identity of the account holder for investment in KVP. However, in KVP, you do not get the benefit of tax deduction under the Income Tax Act 80C and the return is fully taxable. However, withdrawal at maturity is not subject to Tax Deduction at Source (TDS).
Know the other benefits
You can pledge your KVP certificate to avail a secured loan. The interest rate for such loans is low. If payment is made in KVP in cash, they are issued KVP certificate immediately. For cheque, demand draft or money order, you have to wait till the post office clears the amount.
