What is Kisan Vikas Patra?

In 1988, India Post launched the Kisan Vikas Patra, a small savings certificate initiative. Its major goal is to develop long-term financial discipline in people. According to the most recent update, the scheme’s duration is 124 months (10 years and 4 months) if you acquire the certificate between 1 July 2021 and 30 September 2021. The minimum investment is Rs. 1000, and there is no maximum. And if you invest a lump sum now, you will receive twice as much at the end of the 124th month.

Basically, it was intended for farmers to enable them to save for the long term. However, it is now open to everyone.
To reduce the possibility of money laundering, the government made PAN Card evidence mandatory for investments above Rs. 50,000 in 2014. To deposit Rs. 10 lakhs or more, you must prove your income (salary slips, bank statement, ITR document etc.). It is a low-risk savings platform where you may park your money safely for a certain length of time.

Furthermore, the AADHAAR number must be submitted as confirmation of the account holder’s identification.

kisan vikas patra

Benefits of Kisan Vikas Patra

  • Interest– Kisan Vikas Patra’s effective interest rate fluctuates based on the number of years invested in KVP at the time of purchase. The current annual interest rate is 6.9 per cent for the quarter beginning 1 July 2021 and ending 30 September 2021. You will get a higher return on your money if you compound the interest.
  • Taxation- It does not qualify for the 80C deductions, and the returns are fully taxed. TDS, on the other hand, is immune from withdrawals after the maturity period.
  • Rules to premature withdrawal- Even though the account matures in 124 months, the lock-in term is 30 months. Early withdrawal from the programme is not permitted unless the account holder dies or a court order is issued.
  • Guaranteed returns- You will receive the money promised, regardless of market changes. Because this plan was designed for farmers, the goal was to urge them to store for rainy days.
  • Tenure- The maturity term for Kisan Vikas Patra is 124 months, after which you can withdraw the corpus. The maturity proceeds of KVP will continue to earn interest until the money is withdrawn.
  • Nomination facility- Collect a nomination form at the post office and fill out the nominee’s details if nominating a minor, including their birth date.

Kisan Vikas Patra Form

To buy a Kisan Vikas Patra certificate, you must first complete the application form and provide all the required information. In addition, relevant information must be included on the identity slip. You will be needed to fill out the following information on the application form:

  • The amount required to acquire a KVP certificate.
  • The mode of payment, which might be cash or a check.
  • Whether it’s a single, joint “A” or joint “B” certificate, the kind of KVP certificate is important.
  • If the KVP type is not single, the name of the combined owners.
  • In the case of a minor, the minor’s date of birth and the guardian who has the authority to cash the KVP amount is required.
  • All nominees’ complete names, addresses, and dates of birth are shown below.

The investor must sign and date the document. The slip will also include the date, address, and signature of the witness to the nomination.

Information such as the serial number of the KVP certificate, the issue price, the date of encashment, and the postmaster signature, as well as notes such as duplicate issuance and transfer, will be included on the identification slip. In addition, the identity slip must be presented to cash the KVP. As a result, it is critical to provide the correct information in the KVP identity slip and KVP Form.

KVP Rules and Guidelines

  • Title and beginning – All regulations relating to the KVP programme shall be referred to as the “Kisan Vikas Patra Rules, 2014”. They will become effective the day they are published in the Official Gazette.
  • Application of Post Office Savings Certificate Rules, 1960 –The application procedure for the Kisan Vikas Patra is the same as the application process for the Post Office Savings Certificate Rules, 1960.
  • Certificate Issuance – The KVP certificate is issued as soon as payment is received. The certificate and payment have the same expiration date. If the Kisan Vikas Patra Certificate cannot be given right away for whatever reason, a provisional receipt is issued, which can be exchanged for a certificate later.
  • Purchase of Certificate Procedure – The applicant must complete an application form to purchase a Kisan Vikas Patra. This certificate can be purchased with cash, a demand draught obtained in the Postmaster’s favour, a signed withdrawal form, or a check.

FAQ’s about Kisan Vikas Patra

My KVPs have vanished. What is the procedure for getting a copy of a certificate?

To get a duplicate KVP certificate, write to the Post Office where the KVP certificate was issued, seeking a duplicate certificate and including the identity slip supplied at the time of issue. The identity slip will serve as proof of your KVP ownership. If you’ve misplaced or lost your identity slip, please contact the Post Office where it was issued for assistance.

What is the duration of the Kisan Vikas Patra?

Kisan Vikas Patra is available at all post offices and major banks in India. Its current maturity period is 124 months. At least 1000 rupees must be put in this. There is no upper limit on the amount of money that can be invested.

Is Kisan Vikas Patra subject to any taxes?

Investing in Kisan Vikas Patra has no tax advantages (KVP). In addition, you must pay tax on the interest received on the Kisan Vikas Patra based on your tax band. On the other hand, TDS (Tax Deduction at Source) does not apply to Kisan Vikas Patra.