Post Office KVP Tax Details : Many such schemes are run by the Post Office. By investing money in these, investors can get safe and guaranteed returns. The government has increased the interest rates on small savings schemes of the post office from April 1, 2023. In which the post office government scheme Kisan Vikas Patra, which is being run in the name of farmers, is also included. The Central Government has increased the interest on Kisan Vikas Patra from 7.2 percent to 7.5 percent annually from April 1, 2023.
Post Office KVP Tax Details
Post Office KVP Tax Details
Kisan Vikas Patra of Post Office is a lump sum investment scheme run by the Government of India. In this scheme you can double your money within a certain period. Kisan Vikas Patra Yojana is available for investment in all post offices and big banks of the country. This Kisan Vikas Patra has been created especially for farmers. So that they can save their money on long term basis. The minimum investment in this is Rs 1000, there is no limit on maximum investment.
Tax benefits will not be available in KVP
On investing in Kisan Vikas Patra, you will have to pay tax on the interest income earned. Whereas under Section 80C of the Income Tax Act! You do not get any tax benefit on the amount deposited in this scheme. This means that the investment made by you will remain under the purview of income tax. Whereas the interest received on 5 year tax saver FD or National Savings Certificate and PPF account is tax free. The amount deposited in these schemes up to Rs 1.50 lakh gets the benefit of tax exemption under Section 80C of the Income Tax Act. NRIs and Hindu Undivided Families are not eligible to purchase KVP Certificate from Post Office.
Post Office KVP Tax Details
The interest received on the amount deposited in Kisan Vikas Patra comes under taxable income. This is considered as other income and taxed. This interest is taxed in two ways! The first option in this scheme of Post Office is taxation on cash basis. And the second is tax on annual interest. In the first option, the interest received on maturity is added to your income. And then tax is deducted as per the tax slab.
In how many years will the amount in Kisan Vikas Patra double itself?
You are getting interest at the rate of 7.5 percent per annum on the amount deposited in Kisan Vikas Patra. And your money doubles in 115 months i.e. 9 years and 7 months! Under the Kisan Vikas Patra Scheme, any adult above 18 years of age can open an account. Whereas the account can be opened on behalf of a minor by his parents or guardian. This scheme of this Post Office has the facility to open single or joint account.
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