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Kisan Vikas Patra KVP is a Post Office Savings Scheme which was first launched in FY 1988 by Indian Post. Subsequently this central government scheme will double the principal amount in 118 months. Accordingly kisan vikas patra interest rate is 7.6% compounded annually. Kisan Vikas Patra Calculator is used to check the principal amount at a particular time. However, people will not get any kisan vikas patra tax benefit through this scheme.
Central govt. has discontinued Kisan Vikas Patra (KVP) Scheme in FY 2011 and reintroduce this in Budget 2014. 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 2019 before making investment.
Discontinuation of KVP hurts savings mobilization of small investors. Subsequently, govt. has reintroduced this scheme with certain modifications. Accordingly, we have specified the kisan vikas patra interest chart and information on KVP Interest Calculator. People can also see Public Provident Fund (PPF), National Saving Certificate (NSC), Sukanya Samriddhi Yojana (Girls), Post Office Savings Account, Senior Citizen Saving Scheme (SCSS), Recurring Deposit Account (RD), Time Deposit Account (TD), Monthly Income Scheme (MIS)
Kisan Vikas Patra KVP – Types of Certificate
Central govt. sells this instrument which anyone can purchase through any branch of post office. Subsequently, Kisan Vikas Patra instrument is fixed by govt. and candidates can purchase it through cash / cheque / pay order / demand draft. Accordingly, the Kisan Vikas Patra Certificate available is of the following types:-
- Single Holder Type KVP Certificate – Govt. 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 KVP is issued jointly to 2 adults which is payable to both holders jointly.
- Joint B Type KVP Certificate – This KVP is issued jointly to 2 adults which is payable to either of the joint account holders.
Indian Residents can only invest and purchase KVP certificates and NRI cannot invest in KVP certificate.
Kisan Vikas Patra KVP Post Office Scheme – Modifications
Central govt. has proposed the following modifications while re-launching KVP Scheme:-
- People will not receive maturity amount in cash but will now receive this directly in their Post Office Savings account.
- Subsequently at time of purchase of KVP, candidates will not have to follow any KYC norms.
- In addition to this, Kisan Vikas Patra Interest amount will be subject to a deduction of 10% TDS.
- Furthermore, beneficiaries will get KVP certificate from post offices only but later they can get it through specified branches of nationalised banks.
Any person who wishes to purchase this instrument can submit application form in Form A / A1 in person or through an agent.
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.|
On cash payment, KVP certificate is issued immediately. However on payment through Cheque / Pay Order/ Demand Draft, this instrument gets issued on the date of clearance of payment. In addition to this, buyer must make a request for identity slip for any future reference.
Kisan Vikas Patra Interest Rate & Maturity Period
A frequent question arises that KVP doubles principal amount in how many months. The maturity period of Kisan Vikas Patra Scheme is 9 years and 10 months (118 months). Accordingly on maturity, the principal amount get doubled. As per the kvp interest calculator, the effective kvp interest rate comes out to be 7.6% (from 1st Oct 2019 onward). Beneficiary can also en-cash the invested amount before the maturity in any of the following conditions:-
- If the KVP Certificate holder dies or any of the holder dies (in case of joint account).
- If a candidate forfeit a pledge being Gazetted Govt Officer.
- Moreover, if selling of KVP certificate is ordered by court of law.
Henceforth, candidates can calculate their amount after a particular duration through Kisan Vikas Patra Calculator / KVP Interest Rate Calculator.
KVP Certificate – Maximum Amount of Investment
Central govt. sells this certificate in denominations of Rs. 1000, Rs. 5000, Rs. 10000 and Rs. 50000. Moreover, there is no maximum limit on the principal amount. Investor can invest any amount and purchase it in multiple denominations.
Kisan Vikas Patra KVP – Amount Redemption
Kisan Vikas Patra holders can redeem this amount through any post office across the country. However if beneficiary wants to redeem this amount from any other post office from which KVP certificate has been purchased, then he / she has to show their identity slip (issued at time of purchase). Moreover if candidates does not possess the identity slip, then he can only redeem it through the same post office.
Interest paid after Maturity Period
Kisan Vikas Patra Maturity period is 9 years and 2 months. If candidates does not receive the amount on maturity then he will be liable to get an interest (equals to the savings account interest) on the due amount.
Kisan Vikas Patra Tax Benefit
Beneficiaries are not entitled to any tax benefits under Kisan Vikas Patra KVP which makes it less attractive for investment.
- Kisan Vikas Patra KVP amount of investment cannot be claimed as deduction under Section 80C.
- Moreover, the 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 at a Glance
|KVP Interest Rate||KVP Minimum & Maximum Amount|
|7.6% compounded p.a & maturity period is 9 years 8 months||Minimum limit is Rs. 1000 and 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.|
There are other Fixed Income earning instruments which provide more benefits to customers through post offices. Most popular of such schemes are PPF Account and National Savings Certificate.