Kisan Vikas Patra is a scheme introduced by the Indian Government for the welfare of Indian Farmers. As the name includes “KISHAN” it does not mean that is only scheme for the farmers. It is a scheme of mobilisation of funds for the KISAN’S.
Who Can Subscribe Kisan Vikas Patra
It is basically a saving scheme of Government of India for Individual, adult by age of India residential that doubles the investment in eight years and seven months. The scheme bonds of Directorate of Small saving, Government of India is sold to Indian Citizen by all post offices in the country. Encasement of KVP can be done after two and half years from the date of investment/issue of such bond at the invested value and interest accrued thereof for the period.
Government of India utilizes such fund raised for the different welfare scheme of the farmer. It is a very safe way to invest the savings and get assured returns for India individuals.
Where & How to Apply for Kisan Vikas Patra
Investment can be made in Kisan Vikas Patra through forms available at any post office of the country in cash/draft/demand draft with duly filled up form. The minimum amount required for it to deposit is Rs. 100 and there is no upper limit for investment in Kisan Vikas Patra as there is no Tax Rebate on it. KVP are available in the denomination of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs.10000, and Rs. 50000. It is a simple investment option and can be grabbed by filling up a single form with recent photograph and there is no need of opening an account. A Certificate is issued by the post office called Kisan Vikah Patra, with your name mentioned, date of maturity, date of issue, maturity amount receivable etc.
Kisan Vikas Patra Interest Rates
As the investment amount doubles in Eight Years and seven months, the interest rate comes to 8.41% per annum which is compounded half yearly. Earning on Kisan Vikah Patra is more than Fixed Deposit Scheme so this is plus point which this investment carries in comparison to other schemes.
Nomination of Kisan Vikas Patra
One who is an individual with Indian citizenship, adult by age, can invest in this type of scheme either in his own name or can be jointly held by other individuals or on behalf of a minor. A Trust can also go for the investment in Kisan Vikah Patra. There is facility of reinvestment on maturity of the maturity proceeds.
Loan on Kisan Vikas Patra
Business entities, company or institution are not eligible for the investment in the KVP scheme. Any NRI and HUF are also restricted to make investment in this.
Interest Income Accrued on Kisan Vikas Patra is taxable but the tax is not deducted at source, thus full amount is received by the investor at the time of maturity and there is no Wealth Tax liability for KVP. No rebate is given under section 80C, for the investment in Kisan Vikas Patra. These Patras can be pledged as security against a loan to Banks and Government Institutions. It can be easily transferred to any of the post offices of India and from one person to another person as well maintaining the same applicable individual status at the time of investment. Duplicate patras can be made issue for lost, stolen, destroyed, mutilated and defaced.
Kisan Vikas Patra is a good option for those individual investors who are risk averse, as Government of India take guarantee of the fund and fixed return on the invested amount. It gives lesser return than NSC and PPF but more than FD and freedom up to any investment amount. Patras are transferable to POST Office and can be encashed before maturity.
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