Small Savings Scheme of the Post Office: If you want to put your money somewhere safe and make a twofold profit quickly, the Post Office Savings Scheme is a better option for you in a zero-risk investment. If you’re looking for a long-term investment, the post office’s Kisan Vikas Patra (KVP) scheme is a suitable option. Allow us to tell you about this fantastic scheme.
What is the Kisan Vikas Patra Scheme, and how does it work?
The Government of India’s Kisan Vikas Patra Scheme is a one-time investment scheme in which your money is doubled over a set length of time. Kisan Vikas Patra can be found in all of India’s post offices and major banks. Its current maturity period is 124 months. A minimum of 1000 rupees must be invested in this. There is no upper limit on the amount of money that can be invested. In Kisan Vikas Patra, the investment is made in the form of a certificate (KVP). There are certificates available in denominations of Rs.1000, Rs.5000, Rs.10,000, and Rs.50,000.
Documents that are required
Because there is no investment cap in this plan, money laundering is a possibility. As a result, for investments of more than Rs 50,000, the government has made a PAN card essential. In addition, Aadhaar will be used as a form of identification. If you invest more than ten lakh in this, you must additionally provide proof of income, such as an ITR, a salary slip, or a bank statement.
how to purchase a certificate
1. Single-Holder Certificate: This type of certificate is obtained for oneself or for a minor.
2. Joint A Account Certificate: This certificate is given to two people together. Payment is provided to both holders, or whoever is alive, whichever is the case.
3. Joint B Account Certificate: This certificate is given to two adults together. pays either one or both of them if one of them is alive.
Kisan Vikas Patra’s Features
1. This plan guarantees returns and is unaffected by market changes. As a result, this is a very safe investment.
2. You will receive the whole amount at the conclusion of the month.
3. No tax exemption is available under section 80C of the Internal Revenue Code in this scheme.
4. This generates a completely taxable profit. After maturity, there is no tax on withdrawals.
5. You can withdraw the money when it matures, but there is a 30-month lock-in term. Until then, you won’t be able to withdraw money from the programme until the account holder dies or a court order is issued.
6. You can invest in this in denominations of 1000, 5000, 10,000, and 50,000.
7. You can also take out a loan using the Kisan Vikas Patra as security or collateral.