Post Office Scheme: Many such schemes are run by the post office, one of which is Kisan Vikas Patra. Investors can invest money in this scheme and get safe and guaranteed returns.
Post Office Scheme: Every investor wants to double his money as soon as he invests. He tries to find the best scheme possible. But it is important to take care that you don’t end up losing money in this process. By the way, there are many such schemes which can not only double your money with guarantee, but also assure security. You just need a little patience. Many such schemes are run by the post office, one of which is Kisan Vikas Patra. Investors can invest in this scheme and get safe and guaranteed returns. This scheme is currently offering annual interest at the rate of 7.5%. Let’s know about this scheme.
What is Kisan Vikas Patra (KVP)?
Kisan Vikas Patra is a lump sum investment scheme run by the Government of India. In this scheme, you can double your money within a fixed period. Kisan Vikas Patra Yojana is available for investment in all post offices and big banks of the country. This scheme is specially designed for farmers, so that they can save their money on a long-term basis. The minimum investment in this is Rs 1000. There is no limit on maximum investment.
In how much time will the money double
By investing in this scheme, you are getting a return of 7.5 percent per annum. Last year in April 2023, its interest rates were increased from 7.2 percent to 7.5%. From January 2023 to March 2023, it was taking 120 months for the money to double in this scheme. But after this, your money will double five months earlier than that, i.e. in 115 months, i.e. in 9 years and 7 months.
How will 5 lakhs become 10 lakhs?
So according to the current interest rate, if you invest 5 lakhs in this scheme today, then you will get 10 lakh rupees back in the next 115 months i.e. 9 years and 7 months. That is, you will earn 5 lakh rupees directly from interest. If you invest 4 lakhs in lump sum in the scheme, then you will get 8 lakhs back in 115 months. The good thing is that you also get the benefit of compounding interest in this scheme. That is, you earn interest on interest as well.
There is a discount on opening accounts
You can start investing in Kisan Vikas Patra with just 1000 rupees. After this, investment can be made in multiples of 100 rupees. Any number of accounts can be opened under the scheme. Single account and 3 adults together can open a joint account. Nominee facility is also available in this. Children above 10 years of age can open KVP account in their name. Guardians can open an account on behalf of a minor or a person of unsound mind.
If you want to close the KVP account then
You can close the account prematurely after 2 years and 6 months from the date of deposit. KVP can be closed on death of a single account holder or death of any or all account holders in a joint account, seizure by the pledgee being a Gazette Office officer and when ordered by the court. You can pledge the account or transfer it as security by submitting an application form in the concerned post office along with the pledgee’s acceptance letter.
Is there tax on KVP?
Finally, let us tell you that you have to pay tax on the interest received from the Kisan Vikas Patra Scheme. The interest of this scheme comes under taxable income and at the time of ITR filing, you have to show it under ‘Income from other sources’.
