Kisan Vikas Patra, popularly known as . is referred to as KVP, is a savings program offered by India Post. This account can be opened by an adult in his own name or on behalf of a minor and can also be opened jointly for three persons.

Kisan Vikas Patra – Interest Rates

The interest rate for the quarter ended September 30, 2022 is 6.9% which is compounded annually. The minimum investment can be made in multiples of Rs 1000 and Rs 100. There is no limit on the maximum amount.

KVP Tax Benefits

The returns are fully taxable, and the scheme is not eligible for tax deduction under section 80C of Income Tax. However, withdrawals made after the maturity period are not subject to TDS (tax deducted at source).

pay on maturity

The maturity period of an account is nine years and five months starting from the date of deposit. The maturity amount can be refunded to the account holder, on application in Form-2 made to the account office. The effective rate of interest at the time of account opening will be used to determine the maturity period of deposits made under KVP.

Premature Closure of KVP

KVP can be closed at any time before maturity if the following requirements are fulfilled:-

(i) When any or all the account holders in a single account, or joint account, have passed away.

(ii) on seizure by the pledgee being a gazetted officer.

(iii) When ordered by the Court.

(iv) After 2 years 6 months from the date of submission.

(v) Transfer of account from one person to another

mortgage of account

The KVP can be pledged or transferred as security, supported by a letter of acceptance from the pledgee by submitting the prescribed application form at the respective post office.

(ii) Transfer/pledge may be made to the following authorities.

• President of India / Governor of a State.
• RBI / Scheduled Bank / Co-operative Society / Co-operative Bank.
• Corporation (Public/Private)/Govt. Company/Local Authority.
• Housing Finance Company.

KVP account can be transferred from person to person

KVP can be transferred from person to person only on the following conditions.

(i) on the death of the account holder to the nominee/legal heirs.

(ii) on the death of the joint holder(s) of the account holder.

(ii) on the order of the Court.

(iii) pledging the account to the Designated Authority.