Government Scheme: For those looking for a risk-free investment, Kisan Vikas Patra (KVP) can be a great option. This scheme is being run by the government. This is a safe scheme, in which the investment money can double in 124 months i.e. 10 years and 4 months. Investors who want to avoid uncertainties related to the stock market can invest in this scheme.
Available in post offices and banks
Earlier KVP was started especially for farmers, but now it is available to everyone. This is a fixed return scheme, which means investors can know in advance how much return they will get. Investment in KVP can be made in post offices and branches of some selected banks. The objective of this scheme is to use people’s savings safely and give attractive returns on it.
How to invest?
Minimum investment amount: ₹1,000
Maximum investment amount: No limit
PAN card is mandatory for investments more than Rs 50,000.
Aadhar card is necessary for the KYC process.
Only Indian citizens can invest in it.
Lock-in period and other benefits
The lock-in period of KVP is 30 months (2.5 years). After this, money can be withdrawn if needed. This scheme also provides the facility of nomination, so that in the event of the demise of the investor, the nominee gets the amount easily. Apart from this, loan can be taken from the bank by pledging the KVP certificate.
Interest and tax rules
At present the interest on KVP is around 7.5%. However, this interest income is taxed as per the tax slab of the investor. Kisan Vikas Patra Yojana does not provide the benefit of tax deduction under section 80C. Also, TDS is not applicable on the maturity amount.
Why invest?
KVP is a reliable option as it is government backed and secure. It is famous among investors due to its fixed returns and simple process.
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