It is important to mention that Kisan Vikas Patra (KVP) is a small savings scheme supported by the central government.
Investments in post office schemes are generally for the long term. People who prefer long-term investments and conventional investing must definitely check this scheme. The best thing is that there is no risk associated with post office plans because the government is directly involved in it.
Moreover, there is an option of a guaranteed return on investment. Now let’s know the details of Kisan Vikas Patra.
Duration of Kisan Vikas Patra
This scheme will run for 124 months, or 10 years and 4 months. Your lump sum investment will double in value after 10 years and 4 months if you invested in this plan between April 1, 2022, and June 30, 2022.
How much investment is needed?
There is no maximum investment restriction in this scheme. You can buy a Kisan Vikas Patra certificate for a minimum investment of Rs 1,000; otherwise, you can invest any amount you like in this plan.
This proposal was started in 1988. Although its initial goal was to double farmers' money, it is now open to everyone.
Documents required for KVP scheme
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Due to the fact that there are no restrictions on this investment, money laundering is a possibility. As a result, the government made PAN cards compulsory for investments over Rs 50,000 in 2014.
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Income proof, such as an ITR, a pay stub, a bank statement, etc., must be included when investing 10 lakhs or more.
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Additionally, Aadhaar will be used as an identity card.
Features of Kisan Vikas Patra:
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This scheme offers guaranteed earnings and is a very safe option to invest because it is unaffected by market changes, At the end of the period you get the full amount.
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Section 80C of the Income Tax does not provide a tax exemption in this case. This return is entirely taxable. After maturity, withdrawals are tax-free.
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There is a 30-month lock-in period before the amount can be released, either at maturity or after 124 months. Before this, until the account holder passes away or a court order is filed, you are not allowed to withdraw money from the programme.
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One may invest in this in increments of Rs 1,000, 5,000, 10,000, and 50,000.
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You may also take out a loan using the Kisan Vikas Patra as security or as collateral.
