Kisan Vikas Patra: The investment in Kisan Vikas Patra used to double in the first 124 months, it will now be doubled in 138 months.
Kisan Vikas Patra: There has been bad news about the 32-year-old saving schemes of the post office. The government has reduced the interest rate for Kisan Vikas Patra from 6.9 percent to 6.2 percent. Due to this, the investment which used to be doubled in the first 124 months, will now double in 138 months. Kisan Vikas Patra was launched by the Post Office in 1988. This saving scheme was launched so that people can invest for long term. It calculates interest on an annual basis.
At least 1000 rupees can be invested in this scheme. Beyond that, any amount can be deposited in multiple of 100. This is a one-time investment scheme. There is no maximum investment limit. Under one scheme, an investor can open several accounts in his own name. Currently the interest rate of this scheme was 6.9 per cent, which has been reduced to 6.2 per cent. The calculation of interest is an annual compound.
Account can be opened in its own name if it is more than 10 years old
Minors older than 10 years can open this account in their own name. For children younger than that, the account can be opened in the name of the Guardian. Apart from this, joint accounts can also be opened with three people.
2.5 year lock-in period
You can withdraw your money from it after the completion of the 2.5-year term (Kisan Vikas Patra lock-in period) by investing in this scheme. If you need money, you can easily get a loan based on it. It can be easily transferred from one investor to another investor and from one post office to another post office.
Rules regarding tax
Talking about tax related rules (Kisan Vikas Patra tax rules), tax deduction does not benefit if you invest in it. It is not covered under section 80C. Talk about the rules related to tax on earnings. Income with interest is taxed. It is included in your total income and according to the tax slab you come in, you will have to pay tax. 10% of the total interest income is deducted as TDS. TDS is not deducted on withdrawals after maturity period.
