Kisan Vikas Patra Calculator

Kisan Vikas Patra or KVP calculator is an effective tool for individuals willing to determine the maturity amount before investing. Many such calculators are available on different internet portals, which are also extremely easy to use.

What is Kisan Vikas Patra (KVP) Calculator?

Kisan Vikas Patra was introduced in 1988 by the India Post as a small savings certificate scheme. The primary purpose of this scheme was to introduce long-term financial planning concepts to the public. Currently, the scheme has a tenure period of 9 years and five months for investment. People can invest with a minimum of INR 1,000, and no upper limit is attached.

Moreover, there is a benefit of investing a lump sum amount. Lump sum amounts can give double returns at the end of the investment. This investment is open to everyone; however, as the name suggests, it was initially intended for farmers. Submitting your PAN card is mandatory if you are investing more than INR 50,000. Additionally, if the investment is above INR 10 lakhs, you must submit proof of income, like ITR documents, salary slips, and bank documents.

Kisan Vikas Patra is a safe investment suitable for people looking for a long-term investment plan. The investors must submit their Aadhar card to start the Kisan Vikas Patra scheme, regardless of the amount.

Key Features of Kisan Vikas Patra

• Interest Rate: 7.5% per annum (compounded yearly)
  
• Tenure: 9 years and 7 months (115 months)
  
• Minimum Investment: ₹1,000 (no upper limit)
  
• Issuer: Government of India (via India Post)
  
• Transferability: Can be transferred from one person to another or between post offices
  
• Nomination Facility: Available at the time of purchase
  
• Loan Facility: KVP certificates can be pledged as collateral for loans
  

Eligibility and Investment Process and Documents required to apply for KVP Scheme

Eligibility Criteria

• Must be an Indian Resident.
• Individuals, joint account holders, and minors (through guardians) can invest.
• Hindu Undivided Families (HUFs) and NRIs are not eligible.

How to Invest in Kisan Vikas Patra?

1. Visit your nearest post office or designated bank branch.
2. Fill out the KVP application form.
3. Submit required KYC documents (Aadhaar, PAN, etc.).
4. Make the payment (cash, cheque, or demand draft).
5. Receive your KVP certificate or e-certificate.

Documents Required

• Valid ID proof (Aadhaar, PAN, Passport).
• Address proof (Utility bill, voter ID).
• Passport-size photograph.

Premature Withdrawal and Taxation

Premature Withdrawal

• KVP can be encashed only after 2 years and 6 months from the date of issuance.
• Early withdrawal is allowed only in special cases such as death of holder or court order.

Tax Implications

• Interest earned is taxable under “Income from Other Sources”.
• No tax deduction under Section 80C.
• TDS is not deducted at source; you need to declare the income while filing ITR.

Current KVP Interest Rate

As of now, the Kisan Vikas Patra interest rate is 7.5% per annum, compounded annually. The rate is reviewed quarterly by the Ministry of Finance and may change depending on the government’s policy.

Historical KVP Interest Rate

FAQs

What is the Kisan Vikas Patra Calculator?

The KVP Calculator is an online tool that helps you estimate your maturity amount and total interest earned under the Kisan Vikas Patra scheme using the fixed KVP interest rate.

How does the KVP Calculator work?

It uses the formula
A = P (1 + r/n)^(n × t) to compute your returns based on the principal, interest rate, and tenure.

Can I calculate the premature withdrawal value?

No, the standard calculator computes only the maturity value. However, you can withdraw your KVP after 2.5 years under specific conditions.

Is KVP interest fixed or floating?

The KVP interest rate is fixed for the quarter and remains the same for the tenure of your investment.

Is KVP taxable?

Yes, the interest earned is taxable under the Income from Other Sources head. No deduction is available under Section 80C.

Can I invest in KVP online?

Currently, Kisan Vikas Patra certificates can be purchased through post offices and selected banks. Online facility is available in limited banks linked to India Post Payments Bank.

How long does it take to double the amount in KVP?

At the current KVP interest rate of 7.5%, the invested amount doubles in 9 years and 7 months.