Post Office Savings Scheme – The Indian Post Department has launched the Kisan Vikas Patra KVP in the financial year 1988. This is a Post Office Savings Scheme under which the central government will double the principal amount in 118 months. The Kisan Vikas Patra interest rate is 7.3% compounded annually. The Kisan Vikas Patra Calculator is for checking the principal amount at a particular time. Although the people will not get any Kisan Vikas Patra tax benefit through this scheme.
Post Office Savings Scheme
Types of Kisan Vikas Patra KVP Certificates
The Centra government sells this Patra which anyone can purchase through any branch of post office. Under this scheme, the central government had fixed the Kisan Vikas Patra instrument and anyone can purchase it through cash/cheque / pay order/demand draft. Below are the types of Kisan Vikas Patra Certificate –
- Single Holder Type KVP Certificate – The Central Government issues this type of certificate to an adult for himself/on behalf of a minor or to a minor.
- Joint A Type KVP Certificate – This is is issued jointly to 2 adults which is payable to both holders jointly.
- Joint B Type KVP Certificate – It is issued jointly to 2 adults which is payable to either of the joint account holders.
All the Indian Residents can only invest and purchase KVP certificates and NRI cannot invest in KVP certificate.
Modifications Under Kisan Vikas Patra KVP Post Office Scheme
The Central Government has made the proposals for the following modifications while re-launching KVP Scheme:-
- This amount will not be given in cash but directly credited to their Post Office Savings account.
- Besides this, applicants do not need to follow any KYC norms at the time of purchase of KVP.
- Apart from this, the Kisan Vikas Patra Interest amount will be subject to a deduction of 10% TDS.
- In addition to this, the beneficiaries will get KVP certificate from post offices only but later they can get it through specified branches of nationalized banks.
You have to can 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
|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.|
The Kisan Vikas Patra is issued immediately on cash payment. Although on payment through Cheque / Pay Order/ Demand Draft, this instrument gets issued on the date of clearance of payment. Besides this, buyer must make a request for identity slip for any future reference.
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 (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). Besides this, the beneficiary can also en-cash the principal amount before the maturity in some conditions mentioned below –
- In Case of a Joint Account, if the KVP Certificate holder or any of the holder dies.
- If someone forfeits a pledge being Gazetted Govt Officer.
- Besides this, if the court of law ordered the selling of KVP
Now, any beneficiary of this scheme can calculate their amount after a particular duration through Kisan Vikas Patra Calculator / KVP Interest Rate Calculator.
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. However, there is no maximum limit on the principal amount. Al the investor can invest any amount and buy it in multiple denominations.
Amount Redemption Under Kisan Vikas Patra KVP
The holders of Kisan Vikas Patra can redeem this amount through any post office throughout the nation. Besides this, 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 (issued at time of purchase). If you do not possess the identity slip, then you can only redeem it through the same post office.
Interest paid after Maturity Period
The Maturity period of Kisan Vikas Patra is 9 years and 2 months. If you do not receive the amount on maturity then you will be liable to get an interest (equals to the savings account interest) on the due amount.
Kisan Vikas Patra Tax Benefit
Those beneficiaries who make the KVP less attractive for the investment cannot avail any tax benefits under Kisan Vikas Patra KVP.
- Under the section 80C, the Kisan Vikas Patra KVP amount of investment cannot be claimed as a deduction.
- Besides this, KVP interest rate does not levy Income tax and interest is subject to TDS @ 10% deduction.
Kisan Vikas Patra Calculator / KVP Interest Calculator
People who have purchased these Kisan Vikas Patra Certificates can avail the benefits of this scheme. Moreover, people can now check Kisan Vikas Patra Calculator to check the KVP Interest Rate through the link given below:-
Kisan Vikas Patra Calculator
Highlights of Kisan Vikas Patra Calculator
|KVP Interest Rate||KVP Minimum & Maximum Amount|
|7.3% compounded p.a & maturity period is 9 years 8 months||Minimum limit is Rs. 1000 and no Maximum Limit|
|Features of KVP|
|The KVP Certificate can be purchased by any adult for himself or on behalf of minor by 2 adults.|
|After 30 Months, the buyers can en-cash their principal amount.|
|Nomination facility is available.|
|It can also be transferred from 1 person to other.|
|This certificate can also be purchased through any departmental post office.|