Kisan Vikas Patra Scheme Features, Benefits, Eligibility And More

Transfer Process for Kisan Vikas Patra to Another Post Office or Bank

To transfer your Kisan Vikas Patra (KVP) to another Post Office or bank, follow these steps:

Obtain the "Application for Transfer of Savings Certificates" form from the nearest Post Office or bank.
Complete the form, ensuring the appropriate details are filled in accurately.
Sign the application if you hold a certificate other than the 'A' type. For joint account holders, one of them can sign in case of the other's demise.

Transfer of KVP to Another Person

A KVP certificate can be transferred to another person under specific conditions, with consent from an officer of the post office/bank. These conditions include:

To the heir of a deceased person.
To the court of law, or to any person legally specified by the court.
From a single holder to the names of joint holders.
From joint holders to another joint holder.
From single/joint holders to another individual.

For the transfer to be approved, the following conditions must be met, and consent from an authorized postmaster/bank officer is required:

The transferee must be eligible to purchase the certificate as per the rules.
The transfer must comply with one of the following conditions, and it should occur either after one year from the date of certificate purchase or before completing one year:

a. Casual transfer to a close relative (e.g., husband, wife, lineal ascendant or descendant, brother, sister). b. Transfer to the heir/nominee of the deceased holder. c. Transfer to the court of law or to any person specified by the court. d. Transfer in accordance with pledging the certificate at the Reserve Bank of India, a cooperative society, or a scheduled bank. e. Transfer in the name of the survivor if one of the joint holders passes away.

Nomination Facility in KVP Scheme

To utilize the nomination facility in the Kisan Vikas Patra (KVP) scheme, individuals can complete the KVP Application form at the time of purchasing the certificate. If the nomination option is not chosen during the initial purchase, the single holder or joint holders can avail of this facility later by submitting the same form at any time before the maturity period. Additionally, if you possess multiple registered certificates acquired on different dates, separate applications for nomination/variation/cancellation must be submitted for each certificate.

Tax Implications of KVP Scheme

While the Kisan Vikas Patra is not specifically designed to attract investors seeking tax benefits, it does not offer tax deductions on the principal amount and interest. However, it provides other advantages to investors beyond tax savings.

How to invest in Kisan Vikas Patra

Investing in Kisan Vikas Patra is very easy. Here's a simple guide:

Step 1: Get the form (Form A) and fill in your details.

Step 2: Give the filled form to the post office or bank.

Step 3: If an agent helps you, they'll fill out Form A1. You can also download these forms online.

Step 4: Show your ID and address proof (like PAN card, Aadhaar, voter ID, driver’s license, or passport) for the mandatory verification.

Step 5: After your documents are checked, make the payment. You can pay with cash, a local cheque, pay order, or demand draft made out to the postmaster.

Step 6: You'll get a KVP certificate right away, unless you pay by cheque, pay order, or demand draft. Keep this safe because you'll need it when it matures. You can also ask them to email the certificate to you.

In short, if Kisan Vikas Patra sounds good for your money goals, go ahead and invest. It's not complicated—just have the money ready and visit your nearby post office.

Kisan Vikas Patra Scheme Documents Required

To get the Kisan Vikas Patra in 2023, you need some documents. Here's what you'll need:

Form A: Fill out and submit this form at the India Post Office or specific banks.
Form A1 (if using an agent): If someone helps you apply, they'll use Form A1.
KYC Documents (ID Proof): Use documents like Aadhaar Card, PAN Card, Passport, Voter’s ID, or Driving License.

Once you provide these documents, you'll get a KVP certificate. If you lose it, you can ask for a copy from where you got the certificate initially.

KVP Premature Withdrawal

You can take your money out either when it matures or before. If you withdraw within a year of buying, you won't earn any interest, and there might be a penalty.

Kisan Vikas Patra Encashment

To get your money from a Kisan Vikas Patra (KVP), you can do it at the same Post Office where you got the KVP. If you want to do it at a different post office, you'll need to do some paperwork. Here's what you do to get your money:

Visit the Same Post Office: Go to the post office where you got the KVP. If you're doing it at a different post office, be ready for some extra paperwork.
Provide Identity Slip: Give them the identity slip they gave you when you got the KVP. It's like your ticket to get your money.
Write a Letter: Write a letter to the post office, asking to cash in your KVP. Attach the identity slip to the letter.
Early Withdrawal: If you want your money before the maturity date, you can do it after 2 years and 6 months.

Remember, you can also get your money before it matures, but there are specific reasons for that.

Criticism Kisan Vikas Patra (KVP)

Low Returns: The highest return you can get from KVP is around 8.7%, which is less than what you could get from Mutual Funds, systematic investment plans (SIP), and other types of investments.
No Tax Benefits: The money you make from Kisan Vikas Patra doesn't get any tax deductions under Section 80C of the Income Tax Act. Unlike some other investments that can save you money on taxes, KVP doesn't offer this benefit.
Lengthy Maturity Period: If you decide to take out your money within the first year of getting the KVP certificate, not only will you lose the interest, but you'll also face a penalty. Even if you withdraw between one year and two and a half years after buying the certificate, there won't be a penalty, but your interest will be reduced.