Who can purchase : An adult in his own name or on behalf of a minor, A minor, A Trust, Two adults jointly.
Where available : Available for purchase/issue at Post Offices.
Maturity amount / period : With effect from 1st March, 2003, invested amount doubles on maturity after Eight Years and Seven months.
Nomination : Nomination facility is available.
Denomination / Deposit limits : Certificates are available in denominations (face value) of Rs. 100, Rs.500, Rs. 1000, Rs. 5000, Rs. 10,000 & Rs. 50,000.
Tax Benefits : No income tax benefit is available under the scheme. However the deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal.
Premature encashment : Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledgee and when ordered by a court of law.
Place of Encashment/discharge on maturity : Can be encashed/discharged at the post office where it is registered or any other post office.
KVP is suitable for an increase in investment as it accumulates money at a fixed rate, and money doubles at the end of the specified period. It is for those looking for guaranteed returns.
- Minimum Investment Rs. 500/- No maximum limit.
- Rate of interest 8.40% compounded annually.
- Money doubles in 8 years and 7 months.
- Two adults, Individuals and minor through guardian can purchase.
- Companies, Trusts, Societies and any other Institution not eligible to purchase.
- Non-Resident Indian/HUF are not eligible to purchase.
- Facility of encashment from 2 ½ years.
- Maturity proceeds not drawn are eligible to Post office Savings account interest for a
- maximum period of two years.
- Facility of reinvestment on maturity.
- Patras can be pledged as security against a loan to Banks/Govt. Institutions.
- Patras are encashable at any Post office before maturity by way of transfer to desired
- Post office.
- Patras are transferable to any Post office in India.
- Patras are transferable from one person to another person before maturity
- Duplicate can be issued for lost, stolen, destroyed, mutilated and defaced patras.
- Nomination facility available.
- Facility of purchase/payment of Kisan vikas Patras to the holder of Power of attorney.
- Rebate under section 80 C not admissible.
- Interest income taxable but no TDS
- Deposits are exempt from Wealth tax.
KVP Scheme doubles money in seven years and three months.
What is the liquidity of KVP?
If the premature encashment takes place within a period of one year from the date of purchase of the certificate, only the face value of the certificate shall be payable. No interest is payable in this case.
After the expiry of one year, but before two years and six months from the date of the issue of the certificate, the face value of the certificate together with simple interest at the specified rate for the completed months for which the certificate has been held, shall be payable.
If a certificate is encashed any time after expiry of two-and-a-half years, the amount payable is as specified by the government from time to time.