New Delhi: If you want to invest in a place where money is safe and profits are also good, then post office might be the best option for you. Investment in Post Office Savings Scheme also means Investment with zero risk, so that’s a plus point. If you are looking for a long-term investment plan, then invest in the Kisan Vikas Patra (KVP) scheme of the post office for better returns. Here’s all you need to know about this superhit scheme.
What is Kisan Vikas Patra Scheme?
Kisan Vikas Patra is a one-time investment scheme of the Government of India, under which your money is doubled in a fixed period. It is available in all the post offices and major banks of the country. Its maturity period is currently 124 months. At least 1000 rupees have to be invested and there is no limit on the maximum investment. Investment is made in the form of certificates in Kisan Vikas Patra scheme. Certificates worth Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000 can be purchased under this scheme.
There is no investment limit in this scheme, so there is also the risk of money laundering. Therefore, the government has made PAN card mandatory for investments of more than Rs 50,000 in it. Along with this, Aadhaar is also to be given as an identity card. If you invest Rs 10 lakh or more in this, then you will also have to submit income proof, such as ITR, salary slip and bank statement.
Types of KVP certificate:
- Single Holder Type Certificate: It is purchased for self or a minor.
- Joint A Account Certificate: It is issued jointly to two adults. Payment is made to both the holders, or whoever is alive.
- Joint B Account Certificate: It is issued jointly to two adults, pays to either one or the one who is alive.
Features of Kisan Vikas Patra scheme:
- This scheme gives guaranteed returns, it is not affected by market fluctuations. So this investment is very safe. In this, after the end of the period, you get the full amount.
- In this scheme, tax exemption is not available under section 80C of Income Tax Act. The return on this is fully taxable. There is no tax on withdrawal after maturity.
- You can withdraw the amount on maturity, but its lock-in period is 30 months. Before this, you cannot withdraw money from the scheme, unless the account holder dies or there is a court order.
- In this scheme, one can invest in denominations of Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000.
- You can also take loan by keeping Kisan Vikas Patra as collateral or security.
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