KVP - Kisan Vikas Patra Scheme

The investment process for the KVP scheme is simple. You just need to follow these steps: -

Step 1: Collect the KVP application form called Form A and fill it out properly.

Step 2: Submit the duly filled form to the post office.

Step 3: Also submit the supporting documents such as identity proof and address proof along with the form.

Step 4: Once the verification of documents is done, you can make the deposit through cash, cheque, or demand draft.

Step 5: After that, you will receive the KVP certificate in your email after the completion of the payment. Keep the certificate safe as you need to submit it when you withdraw your funds.

If you need to encash your KVP scheme certificate, then you can do so at the same place where it was issued. In case you want to encash it at a different post office, then you will be required to go through some formalities.

In order to encash your KVP certificate, you must submit the identity slip offered while buying the KVP certificate. You also need to submit a written letter.

The Kisan Vikas Patra Scheme does not offer any tax benefits. The interest earned on the investment is taxable under ‘Income and Other Source’ that is paid every year. Moreover, a TDS of 10% is also deducted from the interest. Although, keep in mind that the final maturity amount is exempted from any tax deductions.

The KVP account holder needs to submit an application in writing in order to transfer the KVP certificate from one person to another. The transfer can be done in the following cases: -

Following are the documents required for an individual to get the Kisan Vikas Patra scheme certificates: -

The subscribers of KVP can avail of loans against the scheme. Here are some of the conditions for availing of loans against the KVP scheme:

The current KVP maturity period for the Kisan Vikas Patra scheme is 10 years and 4 months, or 124 months.

The minimum lock-in period for the KVP scheme is 2 and a half years. During this period, the KVP certificate can be encashed prematurely only under some circumstances. These situations may include: -