Investments in Post Office Schemes are long-term. People who prefer long-term investments and conventional investing are the target audience for these programmes. There is no danger associated with Post Office plans because there is a government guarantee. A guaranteed return on investment is another option. One of the Post Office savings plans, Kisan Vikas Patra, makes the audacious claim that it will double investors’ funds with a guaranteed return. It is one of the small savings programmes backed by the central government. The scheme was initially proposed back in 1988.
Although the initial goal of the Kisan Vikas Patra scheme was to double farmers’ funds, it is now open to everybody. This scheme has no limit on maximum investment. You can invest any amount you prefer in this plan. Also, you can buy a Kisan Vikas Patra Certificate for a minimum investment of Rs 1,000. The duration of this plan is 124 months, or 10 years and 4 months. Your lumpsum investment, if made between 1 April 2022, and 30 June 2022, will get doubled in worth after the duration of 10 years and 4 months.
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Beneficial features of Kisan Vikas Patra:
- It is a very safe alternative to invest in because it is unaffected by market fluctuations. You are assured of getting back the full amount at the end of the period.
- For this scheme, there is no tax exemption under Section 80C of the Income Tax. The full return is taxed. When the maturity period is over, withdrawals are made tax-free.
- There is a 30-month lock-in period before the amount can be released, whether it’s at maturity or after 124 months. Prior to this, until the account holder dies or a court order is filed, you are not allowed to withdraw money from the programme.
- The Kisan Vikas Patra may also be used as security for a loan.
Kisan Vikas Patra Certificate details:
Single Holder Type Certificates: An individual or a minor can particularly possess these certificates.
Joint Account Certificate: It is distributed in a joint transaction between two adults. The return is payable to either the living holder or both surviving holders.
The Joint B Account Certificate: It is provided jointly to two people. Payment will be made to either one or the surviving one.
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Necessary documents:
As there are no restrictions on this investment policy, money laundering has always been a possibility. As a result, in 2014, the government mandated that PAN cards be required for investments over Rs 50,000. Income proof, such as an ITR, a pay stub, a bank statement, etc., must be submitted at the time of investing 10 lakhs or more. Additionally, Aadhaar will be considered as identity proof.
