If you plan to save, the government has launched the Kisan Vikas Patra Small Savings Scheme. You can double your money under this savings plan.
So first let us know what is a Kisan development letter?
What is a Kisan Development Letter?
Kisan Vikas Patra (KVP) is a form of government bond. When you deposit money in the scheme, you are in turn given a bond or certificate for this Kisan Development Letter. This certificate states how much time your money will double.
If you are going to invest in a Kisan Vikas Patra Savings Scheme, you should first know about it.
At least 1000 rupees can be deposited in Kisan Vikas Patra, in which it can be deposited only at multiples of Rs 1000. There is no limit to the maximum amount you can invest in this savings plan.
Currently, KVP is available in denominations of 1000, 5000, 10000 and 50000 rupees.
Kisan Vikas Patra (KVP) is a special kind of small savings scheme sponsored by the government. In addition, one can open several accounts.
An account of a Kisan Vikas Patra can be opened by an adult customer himself.
These can be purchased by adults in the name of children. Two people can also buy it jointly.
This account can be closed before maturity. However, the person who buys the KVP will have to fill out the form-3. The rule to do so is that the account holder or joint holder has been killed.
Nomination facility is also available along with this savings plan. The KVP certificate can be transferred from one person to another as well as from one post office to another post office.
Maturity Period (Lock-In)
Rupees can be withdrawn after 30 months from the date of issue of Rs.
Interest rate received
The government is running KVP under small savings schemes. The interest rate on it varies from three months. Currently, interest on this scheme is getting 7.6%.
Interest in this savings plan is deposited every year.
Post Office Kisan offers a compound interest rate on investment in a development letter.
Income tax exemption
Income tax exemption has been granted under section 80C of the Income Tax Act. Income tax benefits can be claimed under Section 80C of the Investment Income Tax Act made under the Kisan Development Letter.
2 passport photos
Credentials (ration card, voter ID, passport, etc.)
Residence certificate (electricity bill, bank pass book, etc.)
If your investment is 50 thousand PAN card is required at this stage and Aadhar card (Government made it mandatory in October 2017).
The last change was made by the Center on December 12, 2019
Government of India has issued its own stamp number GSR 920 (E) which was announced on December 12, 2019. Under it, the rules of Kisan Vikas Patra 2014 have been changed.
Ex. - If (23 January 2020) someone deposits 50 thousand rupees. Then on 23rd June 2029 it will become 1 lakh rupees.
The money will then be transferred to the people in their bank account.