Kisan Vikas Patra

What is Kisan Vikas Patra (KVP)?

Kisan Vikas Patra (KVP) is a savings instrument offered by the government of India through the India Post Office. It is a long-term investment option that allows individuals to earn a fixed rate of interest on their savings. The KVP is a bearer instrument, which means that it is transferable and the ownership can be transferred by mere delivery.

Eligibility for KVP

Any resident Indian individual can invest in the KVP, including minors who can invest through a guardian. Non-resident Indians (NRIs) are not eligible to invest in the KVP.

How to Invest in KVP

The KVP can be purchased from any designated post office in India. To invest in the KVP, the individual must fill out an application form and provide proof of identity and address. The minimum investment amount for the KVP is INR 1,000 (Indian Rupees), and there is no maximum investment limit.

Maturity Period of KVP

The KVP has a maturity period of 10 years, after which the individual can encash the certificate. The individual can also choose to extend the maturity period of the KVP in blocks of 5 years.

Interest Rate on KVP

The interest rate on the KVP is determined by the government and is reviewed periodically. The current interest rate on the KVP is 6.8% per annum, compounded annually.

Tax Benefits of KVP

Kisan Vikas Patra is a savings and investment option. It is not having any tax deductions. The contributions made to the KVP are not eligible for tax deductions under section 80C of the Income Tax Act. And, the interest earned on the KVP is taxable.

KVP as a Savings and Investment Option

The KVP is a safe and secure investment option with moderate returns, and is a popular choice among individuals looking to save and invest for the long term. It is an investment option worth considering for anyone looking to set aside a portion of their income for the future.

Conclusion

Kisan Vikas Patra (KVP) is a savings instrument offered by the government of India through the India Post Office. It is a long-term investment option that allows individuals to earn a fixed rate of interest on their savings. and is a It is safe and secure investment option with moderate returns. It is an investment option worth considering for anyone looking to set aside a portion of their income for the future.

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