Kisan Vikas Patra (KVP): Features, Benefits & Drawbacks
National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), Public Provident Fund (PPF): Compare
KISAN VIKAS PATRA (KVP)
Tenure of Investment
118 Months (9 years 10 months)
Rate of Interest/Return
Interest earned is Fully Taxable
Tax Deduction on Investment
Minimum Lock In Period
30 months (2 years 6 months)
Any Resident Individual for himself or on behalf of a minor;
Any Two Resident Individual can also jointly invest in the scheme.
Individuals will have to conform to the KYC norms. Documents to be submitted are:-
Identity Proof (Passport, Pan Card, Driving Licence, Voter ID Card,etc)
Address Proof (Telephone & Electric Bill, Passport, Voter ID Card, etc)
Passport Size Photo
PAN Card is a must in case of Investment above Rs 50,000/-.
Death of the Certificate Holder or any of the holders.
On order by Court of Law.
Forfeiture by a Pledge being Gazetted Government Officer.
Amount Payable on Pre Mature Withdrawal (After 30 months).
2 years 6 months or more but less than 3 years
3 years more but less than 3 years 6 months
3 years 6 months or more but less than 4 years
4 years or more but less than 4 years 6 months
4 years 6 months or more but less than 5 years
5 years or more but less than 5 years 6 months
5 years 6 months or more but less than 6 years
6 years or more but less than 6 years 6 months
6 years 6 months or more but less than 7 years
7 years or more but less than 7 years 6 months
7 years 6 months or more but less than 8 years
8 years or more but but before maturity
It assures fixed rate of return on Investment. The investment amount doubles on maturity.
The process of Investing in the Scheme is simple and easy.
It is one time Investment Scheme, which means you don’t need to regularly deposit in the Scheme.
Has a shorter lock in period when compared with PPF and NSC.
It does not provide any Tax Benefit in anyway.
Interest Rate is slightly lower when compared to PPF and NSC IX issue.
Scheme does not provide any additional benefits over the other Savings Scheme like PPF and NSC.
Better Investments options are available in the market.
Banks FD’s provide same benefits or slightly better than KVP.