kisan Vikas Patra (KVP) |
|
| Eligibility | Individual age above 18 years, minor |
| Interest rate | 7.3% |
| How to open | at the post office only |
| Investment Limit Per Year | 1000 to No upper limit (but above 10 lakhs Income proofs required ex: ITR, salary slip, etc) |
| Premature closing | after 2.5 years |
| Maturity / Lock-in Period | 9 years & 4 months (112 months). based on interest rate |
| Extension | Reinvestment |
| Tax Benefits | NO benefits |
| Application form pdf | #here |
| Transfer | person to person & post office to post office |
Kisan Vikas Patra Eligibility:
This Scheme not only for farmers (earlier designed for formers) but its applicable for everyone. every citizen of India 18+ years. but not for NRI & HUF.
Benefits:
- Loadn facility again KVP
- Nomination faciity
- Double your money in long term investment
- you can buy certificates of 100, 500, 1000, 5000, 10,000 and 50,000 & multiples of 50k like that.
- Capital Protection & appreciation
- Guaranteed Returns backed by the government.
How to Purchase KVP Certificates?
Visit any nearest post office along with amount/cheque. for 50000 above instment pan card compulsory. income proofs required if you invest more than 10 lakhs.
KVP Interest rate rates
Note: Intrest rates adjust every quarter depending on inflation rates.
Interest added/compounded annually not quarterly like bank FD.
| Time Period | Interest Rate |
| Q2 FY 2019-20 | NA |
| Q1 FY 2019-20 | 7.7% |
| Q4 FY 2018-19 | 7.7% |
| Q3 FY 2018-19 | 7.7% |
| Q2 FY 2018-19 | 7.3% |
| Q1 FY 2018-19 | 7.3% |
KVP Maturity Calculations
7.7% double in 112 months
72/7.7=9.3 years
| property | values |
| Invested amount | 10,00,000 |
| Invested date | 18/5/2019 |
| Maturity Amount | 20,00,000 |
| Maturity Date | 18 July 2028 |
| Total Interest | 10,00,000 |
Tax benefits
Section 80C Not applicable,
No TDS by Post office for KVP & other schemes too.
Comparison kvp vs ppf vs nsc vs scss vs mis vs fd
- NSC: 5 years term with section 80c applicable interest rate 7%* ETE >>
- FD: 5 years with low-interest rate 6-7% TDS and No tax benefits. ETE
- POMIS: Its pension scheme invests lumpsum get monthly income for 4.5 lakh you get 2888 month.
- KVP: 10 years lumpsum capital appreciation @ rate 7.7* tax status
- SCSS: Senior Citizen Saving scheme Its also Pension scheme, invest lumpsum get quarterly payment @7%* ETE
- PPF: 15 years monthly annual contribution at 7%* Tax-free EEE
- NPS: Retirement pension scheme up to 60 Years Age. interest rate Market condition of stocks Tax-free EEE
Note: for tax purose please verify with CA it’s maybe confusing you.
E= Exemption for tax
T= Taxed
EEE/ EET/ ETE/TEE /TTE / TET = Investment, accumulated interest, withdrawal.