Kisan Vikas Patra

Key information:

• Launched in: 1988
• Discontinued in: 2011
• Reintroduced in: 2014
• Launched by: The central Government of India and India post
• Type of Benefit: Investments and Savings
• Beneficiary: All the people
• Website: www.indiapost.gov.in

Key facts:

• In the year 1988, the Central Government of India along with the India post has launched this scheme named Kisan Vikas Patra. 
• Due to some problems, the Central Government of India ended this Scheme. 
• Now, in the fiscal year 2014, the Government of India reintroduced this Kisan Vikas Patra. 
• Moreover, govt. discontinues KVP Post Office Scheme due to the fear of money laundering because it was a bearer instrument. Henceforth, people can invest as well as receive maturity amount in cash. People can Compare All Post Office Schemes 2018 before making an investment.
• Discontinuation of KVP hurts savings mobilization of small investors. 
• Subsequently, govt. has reintroduced this scheme with certain modifications. 
• Many of the people are getting benefits under this Sarkari Yojana. All people are eligible to get this Kisan Vikas Patra by visiting any branch of Post office India. 
• Accordingly, Kisan Vikas Patra instrument is fixed by the central government of India. 
• An individual can purchase it by Cash, Cheque, Pay order or Demand Draft Modes. 
• These central government schemes will double the principal amount in just 118 months. 
• Kisan Vikas Patra calculates interest rate at 7.3% compounded per annum. 
• However, people will not get any kind of Kisan Vikas Patra tax benefit through this scheme.

Types of Certificates

1. Single Holder Type KVP Certificate: 

• The Central Government of India has issued this kind of Certificates for an adult itself or on behalf of any minor or to any minor.

2. Joint A Type KVP Certificate: 

• In this type of Kisan Vikas Patra, it has issued for two adults jointly which is jointly payable for both Holders.

3. Joint B Type KVP Certificate:

• This is for 2 adults jointly and this is paid to either of the joint account holders.

Modifications under Kisan Vikas Patra KVP Post Office Scheme

• The KVP scheme amount will not be given in cash but it is directly credited to applicants Post Office Savings account.
• Moreover, applicants do not need to follow any KYC norms and guidelines at the time of purchase of KVP.
• Besides this, the Kisan Vikas Patra Interest amount will be subjected to a deduction of 10% TDS.
• Along with this, the recipients will get KVP certificate from post offices only and later it will get through specific branches of nationalized banks.
• An Applicant has to submit the application form in Form A / A1 in person or through an agent to purchase this instrument.

Post Office Savings Scheme – Kisan Vikas Patra Form

• In Form A, it has No Background Color Form and this type of form is for direct investment
• In Form A1, it has Colored Background Form and this type of form is for an investment made by an agent.

Kisan Vikas Patra Interest Rate & Maturity Period

• The maturity time period of Kisan Vikas Patra KVP Post Office Scheme is 9 years and 10 months it means 118 months. Under this scheme, the principal amount gets double. According to the KVP interest calculator, the effective KVP interest rate will be hiked to 7.3% (from 1st Jan 2018 onward). 

In addition to this, the beneficiary can also get en-cash the principal amount before the maturity in some conditions mentioned below –

• In Joint Account, if the KVP Certificate holder or any of the holder dies.
• If someone forfeits a pledge being Gazetted Government Officer.
• In addition to this, if the court of law ordered to sell KVP.

KVP Certificate – Maximum Amount of Investment

• The Central Government of India sells this certificate in denominations of Rs. 1000, Rs. 5000, Rs. 10000 and Rs. 50000. 
• There is no maximum limit on the principal amount. Al type investor can invest any amount and buy it in multiple denominations.

Amount Redemption under Kisan Vikas Patra KVP

• The owners of Kisan Vikas Patra can redeem this amount by any post office throughout the nation. 
• Moreover, if you want to redeem this amount from any other post office from where you purchased the KVP certificate then you have to show your identity slip which is issued at a time of purchase.
• If you do not hold the identity slip, then you can only redeem it through the same post office from where you have bought.

Interest paid after Maturity Period

• The Maturity period of Kisan Vikas Patra is 9 years and 2 months it means 118 months. If you do not get the amount of maturity then the applicant will be likely to get an interest which equals to the savings account interest on the due amount.

Kisan Vikas Patra Tax Benefit

Tax benefits under Kisan Vikas Patra KVP.

• Under the section 80C, the Kisan Vikas Patra amount of investment cannot be claimed as a deduction.
• KVP interest rate does not levy Income tax and interest is subject to TDS @ 10% deduction.

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