How do you transfer Kisan Vikas Patra? - Mix Masala/Tech Info

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Monday, 15 June 2020

How do you transfer Kisan Vikas Patra?

Kisan Vikas Patra is the small saving scheme launched by the Government of India and this scheme is originally introduced in 1988 though this scheme was successful right from its inception, later it was discontinued in 2011 based on the recommendation of the committee set up by Government Of India. Kisan Vikas Patra scheme was later re-introduced by the New Government Of India with some changes in 2014.
How do you transfer Kisan Vikas Patra?

In this article, we are going to discuss How do you transfer Kisan Vikas Patra?. Before starting our main topic we would like to share some basic details about these Kisan Vikas Patra Scheme.

Who can invest in Kisan Vikas Patra Scheme:

If you have Indian citizenship and you are an adult then you can simply invest in the Kisan Vikas Patra scheme. 

You can also buy the Kisan Vikas Patra scheme for a minor it jointly with another adult, don't forget to mention the date of birth of the minor and the name of the parent or the guardian. A trust also can invest in Kisan Vikas Patra but a non-resident Indian and Hindu Undivided Families are not permitted to invest in the Kisan Vikas Patra scheme.

You can also buy the Kisan Vikas Patra scheme jointly, the certificate can be the following types:
  1. Single Holder type certificate: Issued to an adult for self or on behalf of a minor or to a minor.
  2. Joint A type certificate: Issued jointly to two adults, payable to both the holders jointly or to the survivor.
  3. Joint B type certificate: Issued jointly to two adults, payable to either of the holders or to the survivor.

How to purchase the Kisan Vikas Patra?

As per the latest update, the tenure for the scheme is now 124 months (10 years & 4 months) if you purchase the certificate between 1 April 2020 and 30 June 2020. The minimum investment is Rs. 1000 and there is no upper limit.

If you want to invest Rs. 10 lakhs or above you just need to submit the income proof like your salary slip, bank statement, or ITR, etc.

As per new rules, the 2014 government made PAN Card proof is mandatory for investment Rs. 50000 or above.

Filling the application Form A is necessary.

Documents required:
  • Age proof (Aadhaar Card, Pan Card)
  • Address proof (Aadhaar Card, Ration Card, electricity/telephone bill)
  • Photo Identity (Aadhaar Card, PAN Card, Driving License)
Investment in Kisan Vikas Patra are subject to a lock-in period of 2 years and 6 months, the certificate cannot be redeemed before this period.

There are no tax benefits or deduction under section 80C of the Income Tax Act 1961 on purchase or investment in the Kisan Vikas Patra scheme.

What is the rate of Interest in Kisan Vikas Patra?

Currently, the rate of interest on KVP is 7.7% p.a. compounded annually. But, this is hinged to 10-year G-sec yield, and therefore subject to change as per government notification. 
The rate of interest is reviewed quarterly.
Amount Repaid (Rs)
2.5 years but < 3 years1154
3 years but < 3.5 years1188
3.5 years but < 4 years1222
4 years but < 4.5 years1258
4.5 years but < 5 years1294
5 years but < 5.5 years1332
5.5 years but < 6 years1371
6 years but < 6.5 years1411
6.5 years but < 7 years1452
7 years but < 7.5 years1494
7.5 years but < 8 years1537
8 years but < 8.5 years1582
8.5 years < 9 years1628
9 years < 9.5 years1675
9.5 years < 10 years1724
10 years but before maturity1774
On maturity of certificate2000
Investment gets doubled in 112 months or in 9 years 4 months at the present rate of interest. (Duration is subject to change as per Interest rates prevailing in the market at the time of investment)

How to transfer Kisan Vikas Patra Certificate?

Kisan Vikas Patra certificate is transferable from one post office to another post office, anywhere in India, and also from one person to another.

To transfer from one person to another, the following cases are permissible, but a letter in this regard needs to be submitted:
  1. Transfer from one owner to joint holders
  2. Transfer from joint holders to one person
  3. Transfer from the name of the deceased to his legal heir
  4. From the joint holder to the judge of law and also to other individuals as ordered by the court.
Transfer of Kisan Vikas Patra from one person to another:

  • A KVP certificate can be transferred or exchanged if approval is sought from the Head Postmaster and the Sub Postmaster, where both belong to the Post Office where the certificate was initially released.
  • A KVP certificate can be transferred from the company to its work on behalf of whom the certificate was initially bought.
  • A KVP certificate can be transferred from The Cooperative Financial Institution or Community, The Planned Financial Institution, or The Reserve Financial Institution of India to its customer or participant.
  • A KVP certificate can be transferred from a Gazetted Government Officer and/or from the regional power to any system/finance/individual and on behalf of whom this certificate was organized and when this certificate was not released in the name of whom it was organized (system/finance/individual).
  • A KVP certificate can be transferred from the deceased owner’s name to their heir.
  • A KVP certificate can be transferred from the judge of law and/or to another individual under the orders of the law court.
  • A KVP certificate can be transferred from one owner to a set of combined owners.
  • A KVP certificate can be transferred from combined owners to the name of one of the combined owners or the remaining owner.

Feature and benefits of Kivas Vikas Patra scheme:

  • Capital Protection: It is safe for investment and at maturity, you will receive the gain.
  • Tenure: The maturity period for Kisan Vikas Patra is 124 months. The maturity proceeds of Kisan Vikas Patra will continue to accrue interest until you withdraw the amount.
  • Nomination: By filling a nomination form from the post office, filled all required information of the nominee.
  • Loan against Kisan Vikas Patra: You can use your Kisan Vikas Patra certificate as collateral or security to avail secured loans.


Is KVP taxable on withdrawal?

There are no tax benefits in this scheme, it does not come under section 80C deduction and is completely taxable. The Kisan Vikas Patra scheme holder to pay the taxes on the interest accrued.

What is the maturity period of KVP?

According to the latest amendments in the scheme, the maturity period is 9 years and 3 months.

Is KVP transferable?

Yes, the Kisan Vikas Patra is transferred from one person to another person.

How can I encash Indira Vikas Patra?

Supreme Court observed that in terms of Rule 5, IVPs could be purchased at any Post Office after payment in cash or by a Cheque/Pay Order or Demand Draft, and no formal application was necessary for such purchase.

Is Kisan Vikas Patra safe?

The KVP scheme is a low-risk saving tool that is safe because it is promoted by the government. So, if you are not willing to take risks and still want high returns, this is a good option for you. Certificates are issued for the amount invested in the scheme.


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