Kisan Vikas Patra
If in less than nine years you want to double your investments, you should invest in Kisan Vikas Patras. It is a long term, fixed interest tool for investment. They are available in all Head Post Offices as well as authorized post office in India. KVP’s are considered to be very safe investment tool, as the Indian Government backs it. The principal is guaranteed and it is a safe scheme for investing your money. KVP is good for an investment increase as it collects the money at a fixed rate and then doubles the money at the end of a given period. It is for people who want guarantee returns. No preferential tax treatment is available for KVP, which shows that it is not qualified for investment under Section 80C of the Income Tax Act.
Who Can Purchase:
- A minor
- Two adults can jointly purchase
- A trust
- An adult in his name or on minor’s behalf
Maturity Amount/ Time Period
- From 1st March 2003, the amount invested gets doubled on maturity after 8 years 7 months.
Rate of Interest
- KVP offers 8.25% interest rate per annum. The rate of interest and maturity are aligned in a way that the investment in KVP gets doubled at maturity.
Nomination
- Facility for nomination is available.
Deposit Limits
- Certificates are provided in denominations of Rs. 100, 500,1000, 5000, 10,000 and 50,000
- No maximum limit is set for purchase of certificates
Benefits of Tax
- You get no income tax benefit under Kisan Vikas Patra
- Deposits made by you are exempted from Tax Deduction at Source during the withdrawal time.
Premature Encashment:
- This is not permitted except for a discount in case of death of the holders, or when court orders
Encashment Place/ Discharge on Maturity:
- Post office can encash or discharge from where it is registered or from any other post office
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Comments
You don’t need any documents for KVP instead just need to fill the KVP application (you can get it from your post office) and submit the same to your nearest post office. Just take the money or cheque with you and ask for the KVP application and fill it and submit it then and there itself, no need for any other documents or info needed to provide.
@Vipul, No, the interest from KVP needs to be shown in income tax returns, it is not excepted from the same.
what documents are required for KVP?