Kisan Vikas Patra – KVP
Table of Contents
What is Kisan Vikas Patra – KVP
Kisan Vikas Patra is a saving certificate scheme which was first launched in 1988 by India Post. Kisan Vikas Patra – KVP
What is the interest rate on KVP
- Interest rate is 6.9% per annum (compounded yearly) wef 01.04.2020
- Amount invested is doubled in 124 months
Tax benefit of investing in KVP
- Interest paid is exempt from taxation
- Amount invested in KVP is allowed as deduction under section 80C
- Amount withdrawn after maturity is tax free
KVP Investment amount
- Minimum amount Rs 1,000/- in a financial year
- There is no upper limit on KVP investment
Salient features of KVP
Certificate can be purchased by
(i) a single adult
(ii) Joint A Account (Maximum 3 adults)
(ii) Joint B Account (Maximum 3 adults)
(iv) Minor above 10 years of age
(i) An adult on behalf of a minor.
(ii) A guardian on behalf of a person of unsound mind
KVP will be issued in the shape of Passbook w.e.f. 01.07.2016
KVP can be purchased from any Departmental Post office
Facility of nomination is available
Certificate can be transferred from one person to another and from one post office to another.
Certificate can be encashed after 2 & 1/2 years from the date of issue
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