Kisan Vikas Patra: A secure Investment
Are you a risk averse investor? Are you looking at investing in some debt instrument? Are you done with your tax saving investments and have also exhausted your PPF limits? You do not want regular income and don’t mind locking your money to earn double returns.

Then Kisan Vikas Patra can be a an instrument where you can invest. While the name suggests that only a farmer can invest money in Kisan Vikas Patra it is not the case. Anyone wishing to invest money at safe places can go for Kisan Vikas Patra.

Kisan Vikas Patra (KVP) is a saving instrument that provides interest income similar to bonds. The KVP is a safe investment tool, as it is backed by the Government of India. The principal is assured and hence it is a safe avenue for investing your money. With low interest rate regime, such saving instruments are in limelight again.

Some features about Kisan Vikas Patra
KVP is available at all Head Post Offices and authorized post offices throughout India

The investment in KVP could be as small as Rs 100. It is available in denominations of Rs 100, Rs 500, Rs 1000, Rs 5000, Rs 10,000 and Rs 50,000. There is no upper limit and hence a person can purchase any number of certificates as one wish to invest. Further investing in it is also simple. One need not open any accounts. Just fill a form and you can purchase the certificates by paying cash, cheque or DD.

It can be purchased: by an adult in his own name, or on behalf of a minor, a Trust or two adults jointly

The best thing about KVP is that you double your money. If you invest Rs 1 lakh, you would earn Rs 2 lakhs after eight years and seven months. The maturity period is fixed. A rate of 8.41% per annum is offered at present. The interest on KVP is compounded half-yearly. This is more earnings, than fixed deposits.

Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledgee and when ordered by a court of law.

KVP can be pledged as security against a loan to Banks/Govt. Institutions and are transferable to any Post office in India. Further, they are transferable from one person to another person before maturity.

Some drawbacks
1) While premature encashment is possible, it is after 2.5 years and turns out to be a costly affair as the yield would be
    lower.
2) No tax benefit as compared to PPF and NSC.
3) The deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal.
4) Interest income is taxable but no TDS
5) Deposits are exempt from Wealth tax.
Conclusion
When comparing to PPF and NSC it may not look to be a good investment. However, compared to a FD it offers a higher rate of return in the current scenario. While the interest earned on KVP is taxable in the same manner as interest income earned on bank FD, the KVP holder is not required to pay TDS unlike a bank FD where interest income of Rs 10,000 or more attracts TDS.

So when you commit yourself to tax planning this year see if you can allocate any excess funds you might have for KVP which would be a good investment option in the times of low rate of interest.

KVP is especially beneficial for people who do not require regular income and want the money at a later date and/or do not have taxable income. KVPs are attractive as an investment avenue with relatively better returns without any risk.

Kisan Vikas Patra

Please note - The following information is as per our records, for latest information please contact your nearest post office.

1)
     Minimum Investment Rs. 500/- No maximum limit.

2)
     Rate of interest 8.40% compounded annually.

3)
     Money doubles in 8 years and 7 months.

4)
     Two adults, Individuals and minor through guardian can purchase.

5)
     Companies, Trusts, Societies and any other Institution not eligible to purchase.

6)
     Non-Resident Indian/HUF are not eligible to purchase.

7)
     Facility of encashment from 2 ½ years.

8)
     Maturity proceeds not drawn are eligible to Post office Savings account interest for a maximum period of two years.

9)
     Facility of reinvestment on maturity.

10)
  Kisan Vikas Patras can be pledged as security against a loan to Banks/Govt. Institutions.

11)
  Kisan Vikas Patras are encashable at any Post office before maturity by way of transfer to desired Post office.

12)
  Kisan Vikas Patras are transferable to any Post office in India.

13)
  Kisan Vikas Patras are transferable from one person to another person before maturity

14)
  Duplicate can be issued for lost, stolen, destroyed, mutilated and defaced patras.

15)
  Nomination facility available.

16)
  Facility of purchase/payment of Kisan vikas Patras to the holder of Power of attorney.

17)
  Rebate under section 80 C not admissible.

18)
  Interest income taxable but no TDS (Tax deduction at source).

19)
  Deposits are exempt from Wealth tax.
Welcome to Indian Share Market
Serving Since 2007
nse,bse,nse India,bse India,bombay stock exchange,share market live,national stock exchange,stock market live,money market,stock exchange,bse nse,sharemarket,share price,nse live,bse live,how to invest in share market,live share market,intraday tips,online trading,live stock market,indian share market,intraday trading,trading,what is share market,share market today,intraday trading tips,trading account,stock market basics,nifty live chart,share market basics,live market,share market news,online share trading,financial market,share trading,share tips,options trading,share market India,trading tips,market live,free intraday tips,market today,share prices,market analysis,shares market,equity shares,stock market news,today share market,share market software,share market online,how to buy shares,free stock tips,online share market,bse share price,bse market,live market watch,live share prices,online trading account,option trading,penny stocks
www.DayTradingShares.com
indian stock market live,indian stock exchange,stocks to buy,stock charts,shares to buy,online stock trading,stock market game,share trading tips,intraday trading strategies,indian stock market news,trading strategies,stock tips India,intraday trading techniques,share marketing,about share market,indian share market live,share India,free share tips,trading software,,free stock market tips,how to invest in shares,forex trading strategies,how stock market works,live stock prices,indian market news,stock trading tips,stock market analysis,indian share market tips,share market tutorial,share market holidays,share market price,share market in India,futures trading,basics of share market,high frequency trading,stocks and shares,how share market works,how to trade in share market,share market live chart,nse tips,mumbai share market,market news India,trading platform,share prices India,learn share market,todays share market,share market in hindi,online share trading India,shares and stocks,share market for beginners
Free Technical Charts|Get Free Advice|Stocks for Investment|Share Market Holidays|
Home Page|Readers|About us|Suggestions|Free Learning Section|
Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but www.daytradingshares.com does not warrant or guarantee their accuracy or date.
www.daytradingshares.com takes no responsibility for any investment decisions based on recommendations provided on website.
Financial contents like Technical charts, historical charts and quotes are taken from NSE and Yahoo sites.
Note - All quotes are delayed by 15 minutes and unless specified.

Google Adsense Ads are posted on every page of the website so visitors clicking on Ads and going to those links and carrying any financial deal is not at all related to www.daytradingshares.com and any financial deal should be done on their own sole responsibility.
Please read at
www.daytradingshares.com/disclaimer.php before using any material or advice given at www.daytradingshares.com