What is Kisan Vikas Patra (KVP)?
Kisan Vikas Patra (KVP) is a risk-free savings certificate scheme offered by India Post. Originally designed for farmers, it is now open to all Indian citizens.
The primary feature of KVP is that it guarantees to double your invested amount over a specific maturity period. The interest rate and maturity period are fixed by the Government of India and revised quarterly.
How It Works
When you purchase a KVP certificate, the interest rate locked in at the time of purchase remains constant for the entire tenure, even if the government changes the rate later. The interest compounds annually.
Unlike the Public Provident Fund (PPF) or ELSS, investments in KVP do not qualify for tax deductions under Section 80C. Furthermore, the interest earned is fully taxable as “Income from Other Sources” according to your income tax slab.