Investments in post office schemes are long-term. These programs are meant for people who like to invest in the long term and in traditional ways. The government guarantees the Post Office programmes, thus there is no risk involved. As an alternative, you may get a promise of profit on your investment. One of the Post Office savings schemes, Kisan Vikas Patra, makes the bold claim that it will double investors’ funds with a guaranteed return. It is one of the small savings programs supported by the central government. The scheme was initially proposed in 1988.
Although the initial aim of the Kisan Vikas Patra scheme was to double farmers’ funds, it is now open to all. This scheme has no maximum investment limit. You can invest the amount you prefer in this plan. You can also buy a Kisan Vikas Patra certificate for a minimum investment of Rs 1,000. A whole 124 months, or 10 years and 4 months, are allotted for the course of this strategy. Your global investment, if made between April 1, 2022, and June 30, 2022, will double after the duration of 10 years and 4 months.
Beneficial features of Kisan Vikas Patra include:
- It is a very safe alternative to invest in because it is not affected by market fluctuations. You are assured of recovering the full amount at the end of the period.
- For this scheme, there is no tax exemption under Section 80C Income Tax. The full return is taxed. When the expiration period ends, withdrawals are made tax-free.
- Before the sum may be released, either at maturity or after 124 months, there is a 30-month lock-in period. Prior to this, they are prohibited from taking money out of the programme until they pass away or a court order is filed.
- The Kisan Vikas Patra can also be used as collateral for a loan.
Kisan Vikas Patra certificate details.
Single-holder type certificates: In particular, a natural person or a minor may possess these certificates.
A Joint Account Certificate: It is distributed in a joint transaction between two adults. The return is payable to the surviving owner or both surviving owners.
The Joint B Account Certificate: Given to two persons at once. One of the surviving parties will get the payment.
As there are no restrictions in this investment policy, money laundering has always been a possibility. So, in 2014, the government said that anyone who invests more than Rs 50,000 had to have a PAN card. When investing 10 lakhs or more, proof of income, such as an ITR, pay stub, bank statement, etc, must be submitted. Also, Aadhaar will be considered proof of identity.