Kisan Vikas Patra: Here's all you need to know about the scheme

If you are looking for a zero-risk investment scheme, then the Kisan Vikas Patra scheme is a perfect fit.

It is a one-time investment scheme where your money is doubled in a fixed period. Kisan Vikas Patra scheme can be bought through post offices. Its maturity period is 124 months. The minimum investment in this is Rs 1,000 while there is no maximum investment limit. Kisan Vikas Patra is backed by sovereign guarantee.

The duration of this scheme is 124 months (10 years 4 months). On Kisan Vikas Patra, you get compound interest of 6.9% per annum. As the name suggests, it comes in in the form of a certificate in values of Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000, which can be purchased.

Invest as much as you want

You can buy a Kisan Vikas Patra certificate with a minimum investment of Rs 1,000 and maximum at Rs 10 lakh. The government made PAN card mandatory in 2014 for investments above Rs 50,000. If you invest Rs 10 lakh or more, then income proof will also have to be deposited such as ITR, salary slip and bank statement. Apart from this, Aadhaar also has to be given as an identity card.

Features of Kisan Vikas Patra

1. Guaranteed returns are given on this scheme, it has nothing to do with the ups and downs of the market, hence it is a very safe means of investment. You get the full amount after the end of the period
2. There is no tax exemption under Section 80C of Income Tax. Return on it is fully taxable. There is no tax on withdrawals after maturity.
3. On maturity, that is, after 124 months, you can withdraw the amount, but its lock-in period is 30 months. Before this you cannot withdraw money from the scheme, provided the account holder dies or a court order.
4. It can be invested in denominations of 1000, 5000, 10000, 50000
5. You can also take a loan by keeping the Kisan Vikas Patra as collateral or as security.

How to open account?

— You can open an account by going to any post office and filling the form. The form can also be downloaded online.

— Full name, date of birth and address of nominee should be written on the form.

— The amount of purchase amount must be clearly written in the form.

—  The amount of KVP form can be paid through check or cash.

— If you are paying through check, then write the check number information on the form.

— Explain in the form KVP single or joint ‘A’ or joint ‘B’ membership, on what basis is being purchased.

— Write jointly the names of both the beneficiaries when purchased jointly.

— If the beneficiary is a minor, write the date of birth (DOB), name of the parents.

— On submitting the form, a farmer development certificate will be given along with the beneficiary’s name, maturity date and maturity amount.