Kisan Vikas Patra Scheme
It is an investment plan owned by the Department of Post, Govt. of India. It was launched in the year of 1988. The Kisan Vikas Patra became a successful scheme for investment through savings certificate. But several cases of its misuse were registered and many anomalies were noticed. As a result, this investment scheme was withdrawn in the year of 2011. But the new NDA govt. under the leadership of Shree Narendra Modi has relaunched the old scheme in 2014. Kisan Vikas Patra (KVP) is nothing but savings certificated under the Indian Posts which are of different value. There are several benefits of investing in the KVP apart from its good returns.
Range of investments under the Kisan Vikas Patra scheme
The savings certificated issued under the Kisan Vikas Patra can be brought directly from any post office of this country. There are several ranges of investments that can be made under this scheme. A beneficiary can join the scheme with a minimum deposit of Rs. 1,000. There are different denominations by which one can buy the savings certificates of KVP. Other two small scale investment denominations are Rs. 5,000 and Rs. 10,000. The maximum denomination amount to invest in KVP is Rs. 50,000. One advantage of this investment plan is that there is no upper limit of investment.
What is the rate of return from Kisan Vikas Patra?
According to the sources of the Dept. of Posts, a beneficiary can expect to double his investment in the Kisan Vikas Patra after a course of 9 years and 2 months. So it is a very feasible investment option with very low risk and moderate rate of return. As this scheme is totally owned by Govt. of India, there is no risk involved and there is full assurance of total returns. At present, the annual rate of interest under the Kisan Vikas Patra scheme is 8.7 per cent per annul.
Eligibility criteria of Kisan Vikas Patra
Any Indian national above the age of 18 years can invest in this Kisan Vikas Patra certificate investment plan by the Indian Posts. A person can have a multiple number of KVP certificates issued under his / her name. In case of minors, an adult must be there on behalf of that minor to open a Kisan Vikas Patra account. Also there is a system to add another name in the KVP scheme. This implies that a KVP certificate may have dual users, jointly operating the account. Nomination facility is available with this KVP scheme. This means, a trustee or nominee can be included who will become the rightful authority of the KVP account in absence of the original beneficiary.
Tax benefits under the Kisan Vikas Patra scheme
The Kisan Vikas Patra also provides some tax benefits to the beneficiaries of this scheme. In case of withdrawals when the KVP account gets matured, no TDS is being implemented. This relief of tax deduction on withdrawal after maturity is very beneficial to the KVP account holders.
Name transfer in Kisan Vikas Patra scheme
After a savings certificate is brought under the Kisan Vikas Patra, the name(s) of the beneficiaries can be changed or altered. Suppose a beneficiary wants to transfer his / her KVP certificate in the name of another person. So he can always do that by filling up the application for transfer of certificate from the departmental post offices. Apart from this, there is also an option where one beneficiary can transfer the KVP certificate from one post office to another.
|Sl. No.||Scheme attributes||Related data|
|1||Name of Scheme||Kisan Vikas Patra|
|2||Rate of interest||8.7 % per annum|
|3||Minimum deposit||Rs. 1,000|
|4||Maximum deposit||No maximum limit|
|5||Availability of Kisan Vikas Patra certificates||Departmental Post Offices|
|7||Tax benefit||No Tax deduction at source on withdrawal after maturity|
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