KISAN VIKAS PATRA – PROFILE


Kisan Vikas Patra

Recently the Government has reintroduced the investment scheme of “Kisan Vikas Patra”.

The reason for the reintroduction of this scheme is to encourage the Public to invest in productive schemes as the citizens are investing  in non-productive assets like Gold, Silver, private bogus inevstment schemes and Ponzi Schemes etc.

what are the characteristics of the scheme “Kisan Vikas Patra”?

1). Investment in this scheme can be made through Post office in cash or through cheque.

2) It will be made available through banks on a latter date.

3). The maturity period of Kisan Vikas Patra is 100 months i.e. of 8 years and 4 months.

4). The investment made will be doubled after this period. Investor will get 8.7% returns on the investment. Investor can make investment of Rs. 1,000, Rs. 5,000, Rs. 10,000, and Rs. 50,000 or in the multiple of this. 5). There is no maximum limit for investing in this scheme. “Kisan Vikas Patra” certificates are transferrable from one person to other any number of times.

6). The investor can avail loan by keeping these certificates with banks or any other financial Institutions.

7). The scheme has lock in period 2 years and 6 months.

8). An Individual or HUF can invest in the scheme.

Documents required or needed at the time of buying or at the time of investment

  1. a) Passport size photo.
  2. b) Identity Card any one of the following i.e. Election card, Ration Card, Passport, Driving License, etc.
  3. c) Address Proof any one of the following i.e. Light bill, Telephone bill, Bank passbook etc. Copy of PAN card is necessary if investment is above Rs. 50,000/-.

d). All these documents should be self-attested.

What is the treatment of Kisan Vikas Patra in Income Tax?

A). Interest from investments is required to be considered under “Income from Other Sources” and income tax will have to be paid on it.

 B). But deduction under section 80C is not allowed on this investment.

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