Kisan Vikas Patra

Kisan Vikas Patras are available from post office. They are in the denominations of RS 1000 , RS 5,000 and RS 10,000. There is no upward limit for making investment in Kisan Vikas Patra. With effect from the period of maturity is 8 years and 7 months. The yields of this investment worked out to about 8%. Premature encashment of Kisan Vikas Patra Is permissible after 2-1/2 years. These are completely exempt from wealth tax. However, with regard to income tax there is no tax benefit at all in respect of either making investment in Kisan Vikas Patra or the interest income from Kisan Vikas Patra, as the interest income is fully taxable. For Persons desiring to have a fixed source of income and not much concerned about the liability or having an income below the taxable limit of income, this is a good investment.

If Kisan Vikas Patra issued on or after 1st day of March, 2003, is encashed at any time after the expiry of two years and six months from the date of issue of the certificate, the amount payable inclusive of interest shall be specified in the table given below for certified of the denomination of RS 1,000 and at proportionate rate for any other denomination, namely:

Date of issue of the  certificate        Amount payable inclusive 
to the date of its encashment            of interest (in rupees) 
2 Years 6 months or more 
but less than 3 Years                      1,170.51
3 Years or more 
but less than 3 years 6 months             1,207.95
3 Years 6 months or more 
but less than 4 Years                      1,267.19
4 Years or more  
but less than 4 years 6 months             1,310.80
4 Years 6 months or more 
but less than 5 Years                      1,355.90
5 Years or more 
but less than 5 years 6 months             1,435.63
5 Years 6 months or more 
but less than 6 Years                      1,488.49
6 Years or more 
but less than 6 years 6 months             1,543.30
6 Years 6 months or more 
but less than 7 Years                      1,649.13
7 Years or more 
but less than 7 years 6 months             1,713.82
7 Years 6 months or more 
but less than 8 Years                      1,781.06
8 Years or more 
but less than 8years 6 months              1,850.93