KISAN VIKAS PATRA (KVP)

Kisan Vikas Patra (KVP) a widely sought post office saving scheme product was relaunched in a new avatar in NOV 2014.

Features of Kisan Vikas Patra scheme
  • Kisan vikas patra can be purchased from any Departmental Post office or PSU bank.

  • Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.

  • Payment for certificate can be made through cash, cheque, demand draft or pay order.

  • Available in denominations of Rs 1,000, 5000, 10,000 and Rs 50,000. Minimum investment is Rs 1000/- and no there is no upper limit.

  • Interest rate on investment in KVP is 7.3% (Jan - March 2018) per annum with maturity period of 110 months (9 years & 4 months).

  • KVP Certificate has lock-in period of 2 & 1/2 years from the date of issue and can be enchased at the end of lock-in period.

  • Certificate can be transferred from one person to another and from one post office/bank to another.

  • KVP can pledged as security for loan.

  • No tax exemption is available on investment in KVP.

Tax treatment on interest earned  from Kisan Vikas Patra Scheme

Interest earned from KVP investment is added to the investors' annual income and taxed at applicable rates. Effective interest is considerably reduced depending on which tax slab you fall in.

How to get duplicate KVP certificate which is lost, stolen or damaged?
  • An application must be made to a post office or bank.

  • Statement should be attached along with application indicating particulars like amount, number, date of certificate and circumstances under which the certificate was lost, stolen or damaged.

  • If Post master of the post office or the bank officer of the branch where the certificate was issued is satisfied with application then you will be issued a duplicate certificate.

  • Applicants who have lost, stolen or damaged certificate beyond identification will have to furnish an indemnity bond with two sureties or with a bank’s guarantee.

  • No bond, surety or bank guarantee will be applicable if damaged certificate is surrendered.

  •  Duplicate certificate can be only encashed at post office or branch where it was issued.