Kisan Vikas Patra (KVP) is one of the best small savings initiatives provided by the Post Office. It now provides an annual interest rate of 7.5%. At the current interest rate, KVP will take 115 months, or 9 years and 7 months, to double your money.
Kisan Vikas Patra 2023 scheme
KVP is a risk-free investment option provided by the Indian Post Office that is popular among many individuals in the country. It is an excellent choice for people searching for a long-term investment.
When will your money be doubled with the KVP scheme?
In approximately 9 years and 7 months, it doubles a one-time investment. For example, a Kisan Vikas Patra for Rs50,000 will provide a corpus of Rs1,000,000 upon maturity.
Here are some further details regarding Kisan Vikas Patra.
KVP: Account creation
A KVP account can be opened by a single adult or a joint account with up to three individuals. A guardian can open an account on behalf of a minor or a person of unsound mind. A minor over the age of ten can open a KVP account in his or her own name. An eligible individual may open an unlimited number of accounts.
Minimum and maximum limits for KVP
Account shutdown prematurely
If the following conditions are met, KVP may be closed prematurely at any moment before maturity:
-
On the death of a single account, or any or all the account holders in a joint account
-
On forfeiture by a pledgee being a Gazette officer
-
When ordered by a court
-
After 2 years and 6 months from the date of deposit
-
Transfer of account from one person to another person.
KVP can only be transferred from one person to another under the following conditions:
-
On the death of the account holder to nominee/legal heirs.
-
On the death of the account holder to the joint holder(s).
-
On order by the court.
-
On pledging of account to the specified authority.
The taxation of KVP
KVP is not eligible for income tax deductions under Section 80C of the Income Tax Act. Kisan Vikas Patra investment returns are taxed.
