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 115 months. Kisan Vikas Patra interest rate is 7.5% compounded annually. KVP Interest Rate 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. Know how to purchase KVP online, withdrawal rules, lock in period and complete details.
Post Office Kisan Vikas Patra Scheme 2024
Central govt. had discontinued Kisan Vikas Patra (KVP) Scheme in FY 2011 and reintroduce this in Budget 2014. The Union govt. discontinued 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 Post Office Schemes before making investment. In this post, we will tell you KVP Interest Rate 2024, Calculator, Online Purchase, Withdrawal Rules, Lock in Period & Tax Benefits.
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, to an adult 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.
Kisan Vikas Patra Online Purchase (Pledging of Account)
KVP may be pledged or transferred as security, by submitting prescribed application form at concerned Post Office supported with acceptance letter from the pledgee. The direct link to download Kisan Vikas Patra Online Purchase Form 2024 is given here – https://www.indiapost.gov.in/VAS/Pages/Form.aspx#SavingCertificates
The Kisan Vikas Patra Online Application Form 2024 will appear as shown below:-
Transfer/pledging can be made to the following authorities:-
- The President of India / Governor of the State
- RBI / Scheduled Bank / Co-operative Society / Cooperative Bank
- Corporation (Public / Private) / Govt. Company / Local Authority
- Housing Finance Company
India Post Office KVP Form Types
Any person who wishes to purchase this instrument can submit application form in Form A / A1 in person or through an agent.
| Form Type | Specification |
|---|---|
| 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.
Who Can Open KVP Account in Post Office
- A single adult
- Joint Account (up to 3 adults)
- A guardian on behalf of minor or on behalf of person of unsound mind
- A minor above 10 years in his own name.
Kisan Vikas Patra Interest Rate
A frequent question arises that KVP doubles principal amount in how many months. The maturity period of Kisan Vikas Patra Scheme is 115 months. Accordingly on maturity, the principal amount get doubled. As per the kvp interest calculator, the effective kvp interest rate comes out to be 7.5% (from 1st October 2023 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 KVP Calculator / KVP Interest Rate Calculator.
KVP Certificate – Maximum Amount of Investment
Minimum Rs. 1000 and in multiple of Rs. 100, no maximum limit. Any number of accounts can be opened under the scheme. 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.
Kisan Vikas Patra Lock in (Maturity) Period
Kisan Vikas Patra Lock in Period or Maturity period is 115 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 Benefits
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:-
https://dailytools.in/GovernmentSavingSchemes/KisanVikasPatra
Kisan Vikas Patra Withdrawal Rules (Premature closure)
Kisan Vikas Patra (KVP) may be prematurely closed any time before maturity subject to the following conditions which are even the KVP withdrawal rules:-
(i) On the death of a single account, or any or all the account holders in a joint account
(ii) On forfeiture by a pledgee being a Gazette officer.
(iii) When order by court.
(iv) After 2 years and 6 months from the date of deposit.
Transfer of Kisan Vikas Patra Account
KVP may be transferred from one person to another person on the following conditions only.
(i) On the death of account holder to nominee/legal heirs.
(ii) On the death of account holder to joint holder(s).
(ii) On order by the court.
(iii) On pledging of account to the specified authority.
Kisan Vikas Patra Calculator – Highlights at a Glance
KVP Interest Rate is 7.5% compounded p.a & maturity period is 115 months. KVP Minimum & Maximum Amount – 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.
To know about Kisan Vikas Patra Rules – Click Here