Kisan Vikas Patra

History-

• Launched initially in April 1988 by Government.
• Distributed through the post offices.
• It was then discontinued by the UPA government in 2011. (because Shyamala Gopinath committee said that KVP is used for money laundering)
• This scheme is now being reintroduced in November 2014.
• Launched under Government Savings Certificates Act 1959.

Kisan Vikas Patra –

• Basically a small savings scheme that doubles the invested sum in (100 months) 8 years and 4 months.
• It is not specifically for farmers, any individual can invest their money.

KVP Sold by –

• The Kisan Vikas Patra is sold by the Directorate of Small Savings, Government of India
• All Post Offices in the country sell Kisan Vikas Patra. To make it accessible to all citizens, KVP can be purchased from any departmental post office.later bank will be eligible.

Eligibility to invest in KVP:

The following criteria should be met by the prospective investors in the Kisan Vikas Patra. These are minimal, making KVP a safe haven for savings in India.

1. Any citizen of India and an adult is eligible to invest.
2. An adult can also invest on behalf of a minor also.
3. Two adults can jointly invest in KVP.
4. A trust can also invest.
5. Not eligible: Business entities like, a company or institutions, NRIs, Hindu Undivided Family (HUF) is not eligible to invest in KVP.
6. Nomination facility available.

 

Kisan Vikas Patra features:

• KVP are available in the Denomination of Rs. 1000, 5000, 10,000 and 50,000.
• No Upper Ceiling on Investment.
• KVP can be bought using cash, cheque, demand draft BUT

1. If Rs.50,000 or more invested, then PAN card copy is prerequisite.
2. If Rs.10 lakh invested, client will have to give proof of income also.

• Transferable with consent of holder in writing to an officer of Post Office. for multiple times.
• If you want to pullout money before 100 months, you can do so after 30 months =2 years and 6 months.(lock up period).
• Tax liabilities

1. Interest earned from Kisan Vikas Patra, is taxable.
2. If you gift KVP-certificate to someone, then he’ll have to pay gift-tax to Government.

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