Post Office KVP: Kisan Vikas Patra is a one-time investment scheme issued by the Government of India, where your money doubles in a fixed period. It is available in all post offices of the country. The minimum investment in this is Rs 1000. There is no maximum limit.
Post Office KVP: Kisan Vikas Patra (KVP) is a scheme in the Post Office Small Savings Scheme, which is being run in the name of farmers. However, any eligible Indian citizen can invest in this scheme. Kisan Vikas Patra guarantees doubling of your deposit capital. The interest rate in this scheme for the current quarter is 7.5% per annum.
Kisan Vikas Patra is a one-time investment scheme issued by the Government of India, where your money doubles in a fixed period. Kisan Vikas Patra is available in all post offices and big banks of the country. The minimum investment in this is Rs 1000. There is no maximum investment limit. This plan was started especially for farmers, but anyone can invest in it. At the rate of 7.5 percent annual interest, the maturity of this scheme is 115 months, that is, your money doubles in 115 months.
Who can open an account?
The person investing in Kisan Vikas Patra must be at least 18 years of age. Apart from single account, there is also a facility of joint account. This scheme is also available for minors, whose guardian has to take care of them. This scheme is also applicable for trusts except Hindu Undivided Family i.e. HUF or NRI.
(i) Single account
(ii) Joint account (in the name of maximum 3 adults)
(iii) This account can be opened by the guardian in the name of a minor
(iv) Account can be opened in the name of a minor over 10 years
Deposit rules
(i) Minimum amount of Rs 1000 can be deposited and thereafter any amount in multiples of Rs 100.
(ii) Any number of accounts can be opened under the scheme.
Certificates have to be taken
KVP has certificates of Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000, which can be purchased.
KVP can be transferred from one person to another only on these conditions: –
(i) To the nominee/legal heirs on the death of the account holders.
(ii) From the account holder to the joint holder on death.
(ii) On the order of the court.
(iii) On pledging the account to a specified authority.
Premature closure: When can the account be closed before maturity: –
(i) On the death of one or all the account holders in a single account or joint account.
(ii) On seizure by the pledgee being a gazetted officer.
(iii) When ordered by the court.
(iv) After 2 years and 6 months from the date of deposit.
(f) Transfer of account from one person to another.
These are the necessary documents
- Identity proof for KYC process
- Aadhar card
- PAN card
- Voter ID card
- Driving license
- PassportKVP application form
- Address proof
- Death of birth certificate
Also Read- Post Office Small Savings Scheme: Changes in PPF account rules from October 1, know key details here
How to open a KVP account
- You can open an account by going to any nearby post office and filling the form. Apart from this, the form can also be downloaded online.
- The full name, date of birth and address of the nominee should be written on the form.
- The purchase amount should be clearly written in the form.
- The amount of KVP form can be paid through cheque or cash.
- If paying through cheque, then write the cheque number information on the form.
- Clarify in the form on what basis KVP is being purchased as single or joint ‘A’ or joint ‘B’ membership.
- If it is purchased jointly, then write the names of both the beneficiaries.
- If the beneficiary is a minor, then write his date of birth (DOB), name of parents, name of parents.
- On submitting the form, Kisan Vikas Certificate will be provided with the name of the beneficiary, maturity date and maturity amount.
KVP: Will you get tax benefits or not
On investing in KVP, you have to pay tax on the amount of profit earned. The exemption given under section 80C of Income Tax Act 1961 does not apply to this scheme. This means that the investment made by you will remain within the scope of income tax, whereas investment up to Rs 1.50 lakh in a year in small savings like PPF account and NSC is eligible for tax exemption under section 80C.
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