Kisan Vikas Patra (KVP) Yojna has been relaunched by Government of India on 18th November 2014.
Who can buy Kisan Vikas Patra?
Any resident person or persons (as specified below) can make an application in Form-A either in person or through an authorised agent at a Post Office.
The KVP Certificates shall be of the following types:
(a) Single holder type Certificates: A single holder type Certificate may be issued to -(a) an adult for himself or on behalf of a minor or to a minor;
(b) Joint ‘A’ type Certificates: A Joint ‘A’ type Certificate may be issued jointly to two adults payable to both holders jointly or to the survivor.
(c) Joint ‘B’ type Certificates: A Joint ‘B’ type Certificates may be issued jointly to two adults payable to either of the holders or to the survivor.
- NRI’s are not eligible to buy KVP.
Things You Need
1. Filled KVP Application Form (Form-A)
2. ID proof – Driving Licence / Voter ID Card / Passport / Ration Card
3. Residence proof – Driving Licence / Voter ID Card / Passport / Ration Card / Telephone Bill
4. Recent Passport Size Photograph
5. KVP Deposit Amount can be made by Cash, Cheque or Demand Draft or instructions to transfer it through your Post Office Savings Account; but
a. If Rs.50,000 or more invested, then PAN card copy is must.
b. If Rs.10 lakh invested, buyer will also need to give additional documents for proof of income.
Please carry original identity proof for verification at the time of account opening.
Things You Take Care
1. Adult can buy it on behalf of minors. But such certificate can’t be transferred to others as long as minor is alive.
2. KVP Tax liabilities:
a- Interest earned from Kisan Vikas Patra, is taxable.
b- If you gift KVP-certificate to someone, then he’ll have to pay gift-tax to Government.
3. Nomination facility available i.e. if I die, handover the money to xyz person.
4. KVP certificate can transferred to others via post office, for multiple times.
5. KVP will double your invested money in 100 Months (8 years and 4 months).
6. KVP are available in the Denomination of Rs. 1000, 5000, 10,000 and 50,000.
7. There is no Upper Ceiling on Investment. You may invest as much as you want.
8. There is a lock-in period of 2 years and 6 months. After 2.5 years and thereafter in any block of six months you can encash the certificates.