Kisan Vikas Patra 2022 Updates

Kisan Vikas Patraa (Kisan Vikas Patra) It is a small savings instrument that allows people to invest in a long-term savings plan. This scheme was started by India Post in 1987. Although the scheme was popular, a government committee formed in 2011 suggested that KVP could be misused for purposes such as money laundering. In 2014, the Kisan Vikas Patra was relaunched with several changes, including mandatory PAN card proof for investments above Rs 50,000 and income proof for investments above Rs 10 lakh.

The main advantage of KVP (Kisan Vikas Patra) investment is the availability and ease of process; KVP certificates are issued at post offices across the country. Any resident Indian can invest in the KVP scheme and obtain the certificate jointly or individually or in the name of a minor. The principal amount invested in KVP will double in 9 years and 4 months (i.e. 112 months) from the date of issue. The main target audience of this scheme is people from semi-urban and rural areas.

Kisan Vikas Patra Key Features | Kisan Vikas Patra Salient features:

(A) Who can open ,
(i) a single adult
(ii) Joint account (up to 3 adults)
(iii) a guardian on behalf of a minor or on behalf of a person of unsound mind
(iv) a minor of more than 10 years of age in his own name.

(B) Deposits :
(i) Minimum Rs. 1000 and in multiples of Rs. 100, no maximum limit.
(ii) Any number of accounts can be opened under the scheme.

(C) Maturity:
The deposit shall mature on the maturity period prescribed by the Ministry of Finance from time to time as applicable on the date of deposit.

(D) Closed prematurely :
KVP can be prematurely closed at any time before maturity subject to the following conditions:-

(i) a single account in a joint account, or on the death of any or all of the account holders
(ii) on seizure by the pledgee being a gazetted officer.
(iii) When ordered by the Court.
(iv) After 2 years 6 months from the date of submission.

(E) Transfer of account from one person to another:
KVP can be transferred from person to person only on the following conditions.

(i) on the death of the account holder to the nominee/legal heirs.
(ii) on the death of the account holder(s) to the joint holder(s).
(ii) on the order of the Court.
(iii) pledging the account to the Designated Authority.

Kisan Vikas Patra Information:

tenure 124 months
Rate of interest 6.9%
investment amount Minimum: Rs.1,000
max: no upper limit
tax benefits You can avail tax benefits under Section 80C of the Income Tax Act, 1961

Kisan Vikas Patra Benefits :

Following are some of the benefits of Kisan Vikas Patra Scheme:

long term savings – Kisan Vikas Patra (Kisan Vikas Patra) With this, you can start saving early with an amount as low as Rs. 1000 Kisan Vikas Patra certificates can be purchased for an amount as low as Rs. 1000 and going up as much as you want. There is no upper limit on the amount you wish to invest. The value is said to double in 100 months i.e. 8 years 4 months. The value that the holder will get on completion of the tenure is declared on the Kisan Vikas Patra certificate itself.

100% Security We all want security on the investments we make. Kisan Vikas Patra Scheme (Kisan Vikas Patra) It gives us just this. Since it is a government owned scheme, the returns are assured and safe. Since the amount you will receive is declared on the certificate, there will be security on the investments made by you and the amount you will receive at the end of the tenure.

fixed rate of interest – Kisan Vikas Patra (Kisan Vikas Patra) The interest rate is fixed on the amount you are investing. This interest rate ensures to double the principal amount in 100 months and is safe as it is a government bond.

Collateral to Loan Kisan Vikas Patra while applying for loan (Kisan Vikas Patra) to certificate Collateral can be used as. Most banks and financial institutions accept this certificate as collateral before issuing any loan to you.

Non Transferable – The benefit of Kisan Vikas Patra only Kisan Vikas Patra (Kisan Vikas Patra) The certificate is received by the holder. To transfer it to some other name, permission of the postmaster is required along with some other formalities.

tax benefits – Kisan Vikas Patra (Kisan Vikas Patra) At the time of encashment or disbursement of the scheme, tax at source is not deducted; It is free from TDS and is paid in full to the holder. However, it is the responsibility of the certificate holder to pay tax on the interest earned during the period of the scheme. This plan is completely free from wealth tax.

physical means of investment – Kisan Vikas Patra (Kisan Vikas Patra) The savings plan comes in the form of a simple printed certificate which can be saved in physical form. There is no demat form for this certificate and it cannot be traded in the secondary market.

fixed lock-in period – Kisan Vikas Patra (Kisan Vikas Patra) The fixed lock-in period on the savings plan is two and a half years. If you have an emergency financial need, you can prematurely redeem this money with interest of some amount after two and a half years from the date of issue.

Types of Kisan Vikas Patra | Types of Kisan Vikas Patra

Kisan Vikas Patra comes in the following types.

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

Kisan Vikas Patra Maturity Period | Kisan Vikas Patra Maturity Period

The deposit shall mature on the maturity period prescribed by the Ministry of Finance from time to time with effect from the date of deposit.

Kisan Vikas Patra Interest Rate | Kisan Vikas Patra Interest Rate

The interest rates w.e.f. 01.04.2020 are as follows:-
6.9% compounded annually

Kisan Vikas Patra Encashment | Kisan Vikas Patra Encashment

If you want Kisan Vikas Patra (Kisan Vikas Patra) If you want to encash the certificate, you can avail it at the post office where the KVP was issued. If you want to redeem it at another post office, there are some formalities to be completed. To redeem KVP, you need to submit the identity slip which was given at the time of purchase of KVP certificate. To redeem the KVP certificate, all you need to do is give a letter in writing to the post office concerned and also present your identity slip.

If you wish to withdraw your principal amount before maturity, you can do so only after 2 years 6 months. Kisan Vikas Patra can be encashed prematurely before maturity under the following circumstances

1. If ordered by a court
2. Forfeiture by mortgage or gazetted officer
3. In case of joint KVP, on the death of the KVP holder or any of the holders.

Kisan Vikas Patra How to transfer account?

Kisan Vikas Patra Certificate can be transferred from one post office to another or from person to person.

Transfer from one post office to another : Kisan Vikas Patra (Kisan Vikas Patra) The certificate can be transferred from one post office from where it was originally purchased to another post office. To transfer the KVP certificate, the investor has to give handwritten consent to the concerned post office official. The transferee must be a resident Indian and must be eligible to purchase the KVP certificate.

Transfer from one person to another : KVP certificate can also be transferred from one person to another for which a written letter has to be submitted to the post office. The following conditions/specifications are applicable for the same:

1.Transfer in the name of the deceased to his successor
2. From single proprietor to joint owners
3. From joint owners to the name of one of the owners
4. From the proprietor to the judge of law and also to other persons, as ordered by the court

Withdrawal of Kisan Vikas Patra | Kisan Vikas Patra Withdrawals

Kisan Vikas Patra (Kisan Vikas Patra) The scheme can be closed before maturity. The principal amount can be withdrawn along with interest. The premature withdrawal period of KVP is 2 years 6 months from the date of issue, which is also the lock-in period. To avail KVP pre-mature withdrawal, the holder has to give in writing to the post office after which the amount will be disbursed. KVP encashment is not allowed unless the KVP holder dies or only on a court order.

Withdrawal of Kisan Vikas Patra | Kisan Vikas Patra Withdrawals

Kisan Vikas Patra (Kisan Vikas Patra) The scheme can be closed before maturity. The principal amount can be withdrawn along with interest. The premature withdrawal period of KVP is 2 years 6 months from the date of issue, which is also the lock-in period. To avail KVP pre-mature withdrawal, the holder has to give in writing to the post office after which the amount will be disbursed. KVP encashment is not allowed unless the KVP holder dies or only on a court order.

Loan Against Kisan Vikas Patra | Loan Against Kisan Vikas Patra

The holder of Kisan Vikas Patra can take loan on the same. Following are the conditions for availing loan against KVP:

The loan applicant should have Kisan Vikas Patra in his name.
Kisan Vikas Patra But the loan can be taken for business or personal purposes only. Loan cannot be taken for any speculation.
Different banks have different charges and interest rates for loan against KVP. Fees vary from time to time and select banks may charge a processing fee for loan grants.
The loan should be repaid within the tenure of the KVP.
Margin and loan amount will be decided by the bank on the basis of KVP challan
,

I have shifted to another city. can i my kvp (Kisan Vikas Patra) Can I encash in Post Offices other than the issuing Post Office?

Kisan Vikas Patra can be encashed at any post office if your identity slip is accepted and if it is confirmed by the post office that you are the original owner. Ideally, it will be much easier for you if you can redeem your KVP at the issuing post office.

Are cooperatives and cooperative banks allowed to invest in Kisan Vikas Patra (KVP)?

No, Co-operative Societies and Co-operative Banks are not allowed to invest in Kisan Vikas Patra (KVP).

Can I get Kisan Vikas Patra (Kisan Vikas Patra) Can I invest Teachers Provident Fund in the scheme?

No, Teachers Provident Fund is not eligible for investment in KVP.

Can NRIs and HUFs invest in KVP scheme?

No, KVP scheme is open to resident individuals only. NRIs and HUFs are not eligible to invest in Kisan Vikas Patra.

What Kisan Vikas Patra (Kisan Vikas Patra) Are there any restrictions with regard to the amount that can be invested in?

No, there is no restriction in terms of investment amount. However, there is a minimum limit, which is Rs 1,000. Which means that at least Rs 1,000 has to be invested in this scheme. Thereafter, one can invest in the denominations of Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000. Also, there is no limit to the number of certificates a person can have.

Kisan Vikas Patra (Kisan Vikas Patra) What is the current interest rate that can be earned with the scheme?

The current rate of interest applicable on this scheme is 6.9% for the first quarter of FY 2021-22.

Kisan Vikas Patra (Kisan Vikas Patra) What are the tax benefits of investing in

Returns received from Kisan Vikas Patra are not eligible for any tax deduction under section 80C of the Income Tax Act. However, withdrawals made after the maturity of the scheme are exempted from Tax Deduction at Source (TDS).

What Kisan Vikas Patra (Kisan Vikas Patra) can be transferred from one person to another?

Yes, Kisan Vikas Patra can be easily transferred from one person to another. This can be done by providing a written consent letter to the Post Master. The original certificate holder has to submit the original KVP certificate for transfer. The new certificate to be issued shall bear the name of the transferee i.e. the person in whose name the certificate is transferred.

How will the maturity amount be paid?

On maturity of the scheme, the payable amount will be deposited directly into the certificate holder’s bank/post office savings account. Therefore, it is important that the certificate holder has a savings account in case they wish to redeem their certificate.

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