Investment in Kisan Vikas Patra Yojana for A.Y. 2022-23 & 2023-24

Investment in Kisan Vikas Patra Yojana

Kisan Vikas Patra is a certificate scheme from the Indian post office. It doubles a one-time investment in a period of approximately 10 years & 4 months (124 months) if you purchase the certificate between 1 July 2021 and 30 September 2021.

A savings certificate scheme, Kisan Vikas Patra (KVP) was originally launched in the year 1981 by India Post. This is basically the Indian Government’s initiative to encourage small savings in the country for the investor’s secure fixture.

Kisan Vikas Patra Information

Tenure 124 months
interest Rate 6.9%
Investment Amount ·        Minimum: Rs. 1,000

·        Maximum: No Upper Limit

Tax Benefits You can avail tax benefits under Section 80C of the Income-tax Act, 1961

Kisan Vikas Patra Eligibility

The following are the Kisan Vikas Patra eligibility:

  • The applicant must be an adult and a resident Indian.
  • The applicant can apply for Kisan Vikas Patra in their own name or on behalf of a minor.
  • Trusts are eligible to invest in Kisan Vikas Patra. HUFs (Hindu Undivided Family) and NRIs are not eligible to invest in KVP.

Taxation

It doesn’t come under the 80C deductions, and the Returns are completely taxable. However, Tax Deducted at Source (TDS) is exempt from withdrawals after the maturity period.

Kisan Vikas Patra Types

A Kisan Vikas Patra comes in the following types.

  • Single Holder Type Certificate: This type of KVP is issued to an adult individually for self or on behalf of a minor.
  • Joint A Type Certificate: This type of KVP is issued to 2 adults jointly and is payable to both the owners or to the survivor.
  • Joint B Type Certificate: This type of KVP is issued jointly to two adults and is payable to either of the owners or to the survivor.

KVP, when of Type A and Type B. is released to both the combined owners. in case the adulthood is due to both the heir and owners or due to either of the heirs, it is released to combined owners.

Kisan Vikas Patra Interest Rate

The current interest rate was reduced from 7.6% to 6.9%. The maturity period was also increased from 113 months to 124 months. The principal amount can be withdrawn after this period only.

Here is an example of how interest accrues and doubles at maturity upon investment of Rs. 1,000 in KVP on 1st. October 2016 at an interest rate of 7.7%.

Interest Rates of KVP

Quarter / Financial Year 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
April-June 7.8% (will
mature in 110 months)
7.6% (will
mature in 113 months)
7.3% (will
mature in
118 months)
7.7% (will
mature in
112 months)
6.9% (will
mature in
124 months)
6.9% (will
mature in 124 months)
July-September 7.8% (will
mature in 110 months)
7.5% (will
mature in 115 months)
7.3% (will
mature in 118 months)
7.6% (will mature in 113 months) 6.9% (will
mature in 124 months)
6.9% (will
mature in 124 months)
October – December 7.7% (will
mature in 112
month)
7.5% (will
mature in 115
months)
7.7% (will
mature in
112 months)
7.6% (will
mature in
113 month)
6.9% (will
mature in
124 months)
Yes, to announce
January-March 7.7% (will
mature in 112
month)
7.3% (will
mature in 118
months)
7.7% (will
mature in
112 months)
7.6% (will
mature in
113 month)
6.9% (will
mature in
124 months)
Yes, to announce
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