Kisan Vikas Patra (KVP) is a savings scheme offered by the Indian Post, initially introduced in the fiscal year 1988. This government-backed initiative aims to double the invested principal amount within 115 months. With a fixed interest rate of 7.5%, compounded annually, individuals can utilize the KVP Interest Rate Calculator to assess the principal amount at specific points in time. It is essential to note that this scheme does not provide any tax benefits. Understanding the process of purchasing KVP online, withdrawal rules, lock-in period, and gaining comprehensive details is crucial for potential investors.
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Post Office Kisan Vikas Patra Scheme 2024
The Kisan Vikas Patra (KVP) Scheme, initially discontinued by the Central government in FY 2011, was later reintroduced in Budget 2014. The Union government halted the KVP Post Office Scheme due to concerns about money laundering, as it was a bearer instrument allowing investment and receipt of maturity amounts in cash. To aid investors in making informed decisions, individuals can compare Post Office Schemes before investing. This post provides information on the KVP Interest Rate 2024, Calculator, Online Purchase, Withdrawal Rules, Lock-in Period, and Tax Benefits.
The discontinuation of KVP had a negative impact on the savings mobilization of small investors. Subsequently, the government reintroduced the scheme with certain modifications. Here, we have outlined the Kisan Vikas Patra interest chart and details on the KVP Interest Calculator. Additionally, individuals can explore other investment options such as Public Provident Fund (PPF), National Saving Certificate (NSC), Sukanya Samriddhi Yojana (for girls), Post Office Savings Account, Senior Citizen Saving Scheme (SCSS), Recurring Deposit Account (RD), Time Deposit Account (TD), and Monthly Income Scheme (MIS).
Kisan Vikas Patra KVP – Types of Certificate
The Central government offers the Kisan Vikas Patra instrument for purchase through any branch of the post office. This fixed instrument can be acquired using various payment methods such as cash, cheque, pay order, or demand draft. The available types of Kisan Vikas Patra Certificates are as follows: [Details on the types of certificates can be provided based on available information.]
There are different types of Kisan Vikas Patra (KVP) Certificates issued by the government:
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1. Single Holder Type KVP Certificate:
– This certificate is issued by the government to an adult for themselves, to an adult on behalf of a minor, or directly to a minor.
2. Joint A Type KVP Certificate:
– Issued jointly to two adults, and the maturity amount is payable to both holders jointly.
3. Joint B Type KVP Certificate:
– Issued jointly to two adults, and the maturity amount is payable to either of the joint account holders.
It’s important to note that only Indian residents are eligible to invest in and purchase Kisan Vikas Patra certificates. Non-Resident Indians (NRIs) cannot invest in KVP certificates.
Kisan Vikas Patra KVP Post Office Scheme – Modifications
The Central government has introduced the following modifications while re-launching the Kisan Vikas Patra (KVP) Scheme:
1. Maturity Amount Credited to Post Office Savings Account:
– Instead of receiving the maturity amount in cash, individuals will now have it directly credited to their Post Office Savings account.
2. Exemption from KYC Norms at the Time of Purchase:
– At the time of purchasing KVP, candidates will not be required to adhere to any Know Your Customer (KYC) norms.
3. TDS Deduction on Kisan Vikas Patra Interest:
– The interest amount earned on Kisan Vikas Patra will be subject to a deduction of 10% Tax Deducted at Source (TDS).
4. Issuance of KVP Certificate from Post Offices Initially:
– Initially, beneficiaries will receive the KVP certificate from post offices. However, later they can obtain it through specified branches of nationalized banks.
Kisan Vikas Patra Online Purchase (Pledging of Account)
Kisan Vikas Patra (KVP) can be pledged or transferred as security by submitting the prescribed application form at the concerned Post Office. This process is supported by an acceptance letter from the pledgee. For those looking to download the Kisan Vikas Patra Online Purchase Form 2024, the direct link is provided here: https://www.indiapost.gov.in/VAS/Pages/Form.aspx#SavingCertificates
The Kisan Vikas Patra Online Application Form 2024 will be displayed as shown below. [Details or images related to the form may be provided based on available information.]
Kisan Vikas Patra Online Application Form
Transfer or pledging of Kisan Vikas Patra can be made to the following authorities:
1. The President of India / Governor of the State
2. RBI / Scheduled Bank / Co-operative Society / Cooperative Bank
3. Corporation (Public / Private) / Govt. Company / Local Authority
4. Housing Finance Company
India Post Office KVP Form Types
Any person who wishes to purchase this instrument can submit application form in Form A / A1 in person or through an agent.
Form Type
Specification
Form A (No Background Color Form)
This type of form is for direct investment
Form A1 (Colored Background Form)
This type of form is for investment made through an agent.
Form Type for Kisan Vikas Patra
When payment is made in cash for Kisan Vikas Patra, the certificate is issued immediately. However, if the payment is made through Cheque, Pay Order, or Demand Draft, the instrument is issued on the date of clearance of payment. Additionally, buyers are advised to make a request for an identity slip for future reference.
Who Can Open KVP Account in Post Office
A single adult
Joint Account (up to 3 adults)
A guardian on behalf of minor or on behalf of person of unsound mind
A minor above 10 years in his own name.
Kisan Vikas Patra Interest Rate
The common query about Kisan Vikas Patra (KVP) is how many months it takes to double the principal amount. The maturity period for the Kisan Vikas Patra Scheme is 115 months, meaning the principal amount gets doubled upon maturity. According to the KVP interest calculator, the effective interest rate comes out to be 7.5% from October 1, 2023, onwards.
There are conditions under which the invested amount can be encashed before maturity:
1. If the KVP Certificate holder dies or any of the holders dies (in the case of a joint account).
2. If a candidate forfeits a pledge, being a Gazetted Government Officer.
3. If the selling of KVP certificate is ordered by a court of law.
Therefore, candidates have the option to calculate their amount after a particular duration through the KVP Calculator or KVP Interest Rate Calculator.
KVP Certificate – Maximum Amount of Investment
Under the Kisan Vikas Patra (KVP) scheme, the minimum investment amount is Rs. 1000, and investments can be made in multiples of Rs. 100. There is no maximum limit on the principal amount, allowing investors to invest any amount. The central government sells KVP certificates in denominations of Rs. 1000, Rs. 5000, Rs. 10000, and Rs. 50000. Additionally, there is no restriction on the number of accounts that can be opened under the scheme, providing flexibility for investors to purchase multiple certificates.
Kisan Vikas Patra KVP – Amount Redemption
Kisan Vikas Patra holders have the flexibility to redeem their investment amount through any post office across the country. However, if a beneficiary wishes to redeem the amount from a post office other than the one where the KVP certificate was purchased, they must present their identity slip issued at the time of purchase. In cases where the identity slip is not available, redemption can only be processed through the same post office where the certificate was originally obtained.
Kisan Vikas Patra Lock in (Maturity) Period
The Kisan Vikas Patra (KVP) has a lock-in or maturity period of 115 months. If a candidate does not receive the maturity amount on time, they will be entitled to receive interest on the due amount. This interest is equivalent to the savings account interest rate.
Kisan Vikas Patra Tax Benefits
Beneficiaries do not qualify for any tax benefits under Kisan Vikas Patra (KVP), making it less attractive for investment. The amount invested in KVP cannot be claimed as a deduction under Section 80C.
Additionally, it’s important to note that the KVP interest rate does not attract income tax, but the interest earned is subject to a Tax Deducted at Source (TDS) deduction of 10%.
Individuals who have purchased Kisan Vikas Patra Certificates can avail the benefits of this scheme. Furthermore, interested individuals can check the Kisan Vikas Patra Calculator to assess the KVP Interest Rate through the provided link: Kisan Vikas Patra Calculator: https://dailytools.in/GovernmentSavingSchemes/KisanVikasPatra
Kisan Vikas Patra (KVP) may be prematurely closed at any time before maturity, subject to the following conditions, which also constitute the KVP withdrawal rules:
(i) On the death of a single account holder or any or all of the account holders in a joint account.
(ii) On forfeiture by a pledgee, who is a Gazette officer.
(iii) When ordered by a court.
(iv) After 2 years and 6 months from the date of deposit.
Transfer of Kisan Vikas Patra Account
Transfer of Kisan Vikas Patra (KVP) from one person to another is allowed under the following conditions only:
(i) On the death of the account holder to the nominee/legal heirs.
(ii) On the death of the account holder to joint holder(s).
(iii) On order by the court.
(iv) On pledging of the account to the specified authority.
Kisan Vikas Patra Calculator – Highlights at a Glance
Here is a concise summary of the Kisan Vikas Patra (KVP) Calculator highlights:
– KVP Interest Rate: 7.5% compounded annually. – Maturity Period: 115 months. – KVP Minimum Amount: Rs. 1000. – KVP Maximum Amount: No maximum limit.
Features of KVP
Any adult can purchase KVP certificate for himself or on behalf of minor by 2 adults.
Buyers can en-cash their principal amount after 2 and half years.
Nomination facility is available.
KVP certificate can even be transferred from 1 person to other.
It can be purchased through any departmental post office.
Features of KVP
There are additional fixed-income earning instruments offered through post offices that offer more advantages to customers. Among the most popular of these schemes are the PPF (Public Provident Fund) Account and the National Savings Certificate.
For details on Kisan Vikas Patra rules, you can click here
