Kisan Vikas Patra: Some post office schemes can double your money even on long-term investment. One such scheme is Kisan Vikas Patra, in which the investment gives you double returns.
The Central Government in association with the India Post Office runs several investment and savings schemes. These investment vehicles not only give you guaranteed returns, your money is also safe. In some post office schemes, money is available at a higher rate of interest than a fixed deposit account, while some schemes can even double your money on long-term investment. One such scheme is Kisan Vikas Patra, in which you get double returns on investment.
Let's know the benefits of Kisan Vikas Patra Yojana and its other features-
- Kisan Vikas Patra lends money to the investor at an annual compound interest rate. According to the India Post website, it currently earns compound interest at 6.9% per annum. These rates will be applicable from 1st April, 2020.
- It doubles your money in 124 months. That is, if you invest Rs 5 lakh in it today, it will make your return Rs 10 lakh in next 10 years, 4 months.
- Its maturity is 10 years 4 months.
- You can invest in this scheme at least Rs. Can invest up to 1,000, no maximum investment limit.
- The government sells Kisan Vikas Patra certificate in denominations of Rs.1000, Rs.5,000, Rs.10,000, Rs.50,000.
- You can open any number of accounts under this scheme.
- Tax exemption benefit is also available on investment in Kisan Vikas Patra. In this, income tax exemption can be claimed under Section 80C of the Income Tax Act.
- It also has an early termination facility with certain conditions. Account holders can also withdraw their money within 2 years 6 months.
Who can open?
- Any adult can invest in this scheme.
- A joint account can also be opened, but one account cannot have more than three people.
- A guardian account can be opened in the name of a minor or an infirm person.
- A minor above 10 years of age can open it in his own name
What documents will be required to take Kisan Vikas Patra?
- KVP Application Form
- aadhar card
- address proof
- Age certificate
- Passport size photograph
- mobile no
Kisan Vikas Patra is made available by the Post Office on behalf of the Government. KVP certificates can be purchased by cash, cheque, pay order or demand draft. Or you can download the form by visiting this link- Kisan Vikas Patra Form. You can fill this form offline and submit it to the post office along with the required documents.
KVP FAQ's
Who is eligible for Kisan Vikas Patra?
Applicant must be an Indian citizen. Applicant should be above 18 years of age. An adult can apply on behalf of a minor. Hindu Undivided Families (HUFs) and Non-Resident Indians (NRIs) are not eligible to invest in KVP.
How can I withdraw money from Kisan Vikas Patra?
To redeem the KVP certificate, you just need to give a letter in writing to the concerned post office and also present your identity slip. If you want to withdraw your principal before maturity, you can do so only after 2 years 6 months.
In how many years money doubles in Kisan Vikas Patra?
According to Post Office, your investment amount in Kisan Vikas Patra doubles in 124 months i.e. 10 years and 4 months.
How much tax is applicable on Kisan Vikaspatra?
Amount invested in KVP does not offer any tax deduction under section 80C. Interest earned on KVP is also exempt from income tax and 10% TDS is deducted from the interest.
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