Post Office scheme: Post Office scheme is a safe, zero-risk, and long-term investment scheme.
Post office is a long-term investment
Post office schemes are long-term investments. Actually, these schemes are for those who prefer traditional investments and make long-term investments. Government guarantee is available on post office schemes, i.e., there is no risk in it. Also, a guaranteed return on investment is also available. Here we are going to tell you about a similar post office scheme named Kisan Vikas Patra.
What is Kisan Vikas Patra Scheme (KVP)?
The duration of this scheme is 124 months, i.e., 10 years 4 months. If you have invested in this scheme from April 1, 2022, to June 30, 2022, then the lump sum amount deposited by you doubles in 10 years and 4 months.
How much to invest?
There is no maximum investment limit in this scheme. You can buy Kisan Vikas Patra Certificate with a minimum investment of Rs 1,000, i.e., you can put as much money as you want in this scheme. This scheme was started in 1988. Then its objective was to double the investment of farmers, but now it has been opened to all.
Required documents
With no limit on this investment, there is a risk of money laundering. Therefore in 2014, the government made PAN card mandatory for investments above Rs 50,000.
If investing 10 lakhs or more, then income proof will also have to be submitted, such as ITR, salary slip and bank statement etc.
Apart from this, Aadhaar is also to be given as an identity card.
How can you buy it?
- Single Holder Type Certificate: This type of certificate is purchased for self or for a minor.
- Joint A Account Certificate: It is issued jointly to two adults. Payable to both holders, or whoever is alive.
- Joint B Account Certificate: It is issued jointly to two adults. pays to either one or the one who is alive.
Features of Kisan Vikas Patra
- Guaranteed returns are available on this scheme, it has nothing to do with market fluctuations, so it is a very safe way of investment. You get the full amount at the end of the term
- In this, tax exemption is not available under section 80C of Income Tax. The return on this is fully taxable. Withdrawals after maturity are not taxed
- You can withdraw the amount on maturity, i.e., after 124 months but its lock-in period is 30 months. Before this, you cannot withdraw money from the scheme unless the account holder dies or there is a court order
- In this one can invest in denominations of 1000, 5000, 10000, 50000.
- You can also take loan by keeping Kisan Vikas Patra as collateral or as security.
