Who can Purchase KVPs
1) Any adult individual for himself or on behalf of a minor
2) A registered trust
Where to Purchase KVPs
1) KVPs can be purchase from all Departmental post –offices authorized to transact saving bank business.
How to Apply KVPs
1) Fill Application
2) Deposit payment (cash/ chequ/pay order/demand draft)
Nomination of KVPs
1) Available
Denomination of KVPs
1) Rs.100, 500, 1000, 5000, 10000, 50000.
Maturity Period of KVPs:
Period of Issue Maturity Period
On or after 1.3.2003 8 Years 7 months
01.03.2002 to 28.02.2003 7 Years 8 Months
01.03.2001 to 28.02.2002 7 Years 3 months
15.01.2000 to 28.02.2001 6 Years 6 Months
01.01.1999 to 14.01.2000 6 Years
02.09.1993 to 31.12.1998 5 Years 6 Months
Encashment:
On maturity
Premature Encashment of KVPs
1) Allowed but under specific circumstances only, such as death of the holder forfeiture by a pledge being a Gazetted Govt. Officer or under court’s order.
Tax Benefits :
1) No income tax benefit is available under the scheme
2) The deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal.
3) Interest income taxable but no TDS
4) Deposits are exempt from Wealth tax.
Related posts:
- Kisan Vikas Patra (KVP) Interest Rates Chart
- National Savings Certificates (NSC) VIII Issue
- Service Tax Rates From Year 2001 to Up to Date
- Service Tax Rates Chart
- Public Provident Fund (PPF)
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{ 1 comment… read it below or add one }
Premature encashment of KVP is Permitted without any condition after 2 years and six months. Also there is a provision to preclose it any time after the expiry of 2 yrs and six months and ther is also various slab of preclosing with preknown maturity value .
Please include the details. KVP is barred by RBI for Pledging in Banks. Please clarify