All information about Kisan Vikas Patra | All you need to know about Kisan Vikas Patra Scheme | India Post Office | Saving Scheme |

'Kisan Vikas Patra' is a certificate scheme from the India Post.

Initially, it was meant for farmers (Kisans) to enable them to save for long periods, and hence the name is "Kisan Vikas Patra". Now, it is available for all.

A/c Opening:
Who can open -

• A single adult Person
• Up to 3 adults, can open Joint Account
• A guardian on behalf of minor or on behalf of person of unsound mind
• A minor, who is above 10 years (in his own name).

Before you go to open KVP A/c, remember that:

• Person who wants to open KVP account should have to mandatorily submit AADHAAR number as proof of identity of A/c holder.
• PAN Card is compulsory for investments above Rs. 50,000.
• Also, for depositing Rs. 10 lakhs and above, you must need to submit income proofs i.e. salary slips, bank statement, ITR document etc.

KVP certificate issuance:

If amount is invested through cash, they issue the KVP Certificate on the spot. 

And in case of Cheque, Demand Draft or Money Order, they will issue KVP Certificate only after the amount is cleared to the post office till that time you have to wait.

Minimum & maximum investment required:
Minimum of Rs. 1000/- is required for opening of A/c and further amount can be deposited in multiples of Rs. 100/-
There is no Maximum balance Limit.

Interest Payable:
From 01.04.2020, interest rates on KVP are 6.9 % compounded annually

Doubling Period:
Amount Invested in KVP Scheme doubles in 10 years & 4​​​ months (124 months).

Maturity:

The deposit shall mature on the maturity period prescribed by the Ministry of Finance (MoF) from time to time as applicable on the date of deposit.

Premature closure:
KVP may be prematurely closed any time before maturity but subject to the following conditions:

• On the death of a account holder and in case of joint account, any or all the account holders
• On forfeiture by a pledgee being a Gazette officer.
• When order by court.
• After 2 years & 6 months from the date of deposit.
• Transfer of A/c from one person to another person.

KVP may be transferred from one person to another person on the following conditions only:

1. On the death of A/c holder to nominee/legal heirs.
2. On the death of A/c holder to joint holder(s).
3. On order by the court.
4. On pledging of A/c to the specified authority.

Pledging of account (Loan against KVP certificate):
You can use your KVP certificate as collateral security to avail secured loans. The interest rate is comparatively lesser for such loans.
KVP can be pledged by submitting prescribed application form at concerned Post Office supported with acceptance letter from the pledgee.

Pledging can be done to the following authorities.

• The President of India/Governor of the State.
• RBI/Scheduled Bank/Co-operative Society/Co-operative Bank.
• Corporation (public/private)/Govt. Company/Local Authority.
• Housing finance company.

Taxation of Kisan Vikas Patra Scheme:

• There is no incentive for investment in KVP.
• It doesn’t come under the 80C deductions. So, Deduction under section 80C is not allowed on this investment.
• The returns are completely taxable. Interest on KVP is taxable on accrual basis and it will be taxed as Income from Other Sources.
• However, There is no TDS from withdrawals after the maturity period.

Other Features:

• You can open any number of accounts under the scheme.
• It doubles your investment in a period of approximately 10 years & 4 months (124 months)

Benefits:

• It is a low-risk savings platform.
• Guaranteed returns Regardless of the market fluctuations.
• Guaranteed protection of capital sum.
• It means, it's a safe mode of investment and not subject to market risks.
• You will receive the investment and gains at the maturity.

Disclaimer: 

The above article is meant for informational purpose only and does not purport to be advice or opinion, legal or otherwise, whatsoever. While due care has been taken during the compilation of this article to ensure that the information is accurate to the best of our knowledge and belief, the contents of such article do not substitute for professional advice that may be required. The individual expressly disclaims all and any liability to any person who has read this document or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this article.