Kisan Vikas Patra

Kisan Vikas Patra (KVP) is also fixed guaranteed income investment scheme. The KVPs can be purchased from any post office in India. These can be transferred from one person to another. The interest earned thereon is fully taxable.

KVP can be purchased by an Individual Indian Resident or Two Resident Individual or Trusts or a parent/guardian can invest on behalf of minor but not an HUF or an NRI. Kisan Vikas Patra was reintroduced in 2014, with a number of changes including mandatory PAN Card proof for investments over Rs. 50, 000 and income source proof for investments exceeding Rs.10 lakh.

• An individual Indian Resident, or
• Two resident individual jointly, or
• Trusts
• A parent/guardian may invest on behalf of a minor.
• Hindu Undivided Families (HUFs) and Non-Resident Indian (NRIs) cannot invest in Kisan Vikas Patra.

Single Holder: This Single Holder Certificate applies to an adult, or an adult on behalf of a minor. It enables the individual to hold the account to himself.

Joint ‘A’: This Joint ‘A’ certificate is applicable to two adult holders and will be paid to both when the scheme is matured.  For transfer or cancellation or even for  nomination, the signature of both the holders would be needed.

Joint ‘B’: The Joint ‘B’ certificate is the same as Joint ‘A’, but differs in the payment of maturity value. Hence, the maturity value will be given to any one of the two account holders.

You can invest the minimum amount of Rs. 1000 and in multiples of Rs. 1000, there is no maximum limit to invest in KVP.

Now the Interest rate for the 1st quarter of 2023-24 is 7.50% per annum. the interest rate has reduced to 6.90% per annum w.e.f. 01.04.2020, Now the interest rate has been increased to 7.70% w.e.f 01.10.2018, earlier it was 7.30% from 01.04.18 to 30.09.2018. The interest earned on KVP is compounded annually.

Yes, you can use KVP certificate as collateral or security to avail secured loans. The interest rate is comparatively lesser for such loans.

Premature withdrawal is allowed only after completion of 30 months.

Now, The maturity period for Kisan Vikas Patra is 120 months and you can avail the corpus then. The maturity proceeds of KVP will continue to accrue interest till you withdraw the amount. the maturity period is 112 months w.e.f. 01.10.2018, earlier it was 118 months from 01.04.2018 to 30.09.2018.

Facility of nomination is available.

Kisan Vikas Patra can be easily transferred from one post office to another as well as from one person to another.

• The investment in KVP is not eligible for income tax exemption under section 80C.
• Interest received thereon is fully taxable.

Tax Deducted at Source (TDS) is exempted from withdrawals after the maturity period.