In respect of Kisan Vikas Patra consider the following statements:
1. The invested amount is doubled in 100 months
2. There is no maximum limit on investment in Kisan Vikas Patra
3. The amount invested in KVP is eligible for tax rebate
4. The interest earned on Kisan Vikas Patra is eligible for tax rebate
Which among the above is / are correct statements?

Answer: [B] Only 1 & 2

  • Kisan Vikas Patra doubles the investors money in 100 months or 8 Yrs 4 months. Interest rate is 8.7% per annum.
  • KVP’s are available in the denominations of Rs 1000, Rs 5000, Rs 10000, Rs 50000.
  • There is no maximum limit on investment in Kisan Vikas Patra.
  • KVP’s have a lock-in period of 2 Yrs 6 months. One can encash them after lock-in period and need not wait till maturity.Beyond this 30 month lock-in period, investors can redeem in every 6 month interval.
  • Any individual or joint individuals can buy KVPs and they can be transferred from one person to another any number of times.
  • Currently these are issued at all Post Offices in India. Later they would be issued through Nationalized banks in India.
  • The amount invested in KVP’s are not eligible for tax rebate u/s 80C. The interest amount is also fully taxable.

This question is a part of GKToday's Integrated IAS General Studies Module