Kisan Vikas Patra (KVP): all the rules
Tap a heading to expand it. Rules checked on 7 October 2026.
Who can invest
- An adult for themselves, a guardian on behalf of a minor or a person of unsound mind, or a minor aged 10 or above in their own name.
- Jointly by up to three adults: Joint A (paid to all holders together, or the survivors) or Joint B (paid to any holder, or the survivors).
- NRIs and HUFs cannot invest.
Investment
- Minimum ₹1,000, in multiples of ₹100. There is no maximum, and you can buy any number of certificates.
- PAN is required. Larger investments also need proof of the source of funds under the KYC rules for small savings.
Maturity
- Your money doubles. The doubling period depends on the rate when you buy — currently 115 months (9 years 7 months) — and it stays fixed for your certificate.
- After maturity, money left uncollected earns only the Post Office Savings Account rate (currently 4%).
Closing early
- The official scheme allows early closure only: on the death of the holder (or any joint holder); on forfeiture by a pledgee who is a Gazetted Officer; or on a court order. Partial encashment is not allowed.
- In those cases: within the first 2½ years, you get your investment plus simple interest at the Post Office Savings Account rate (currently 4%); after 2½ years, a value set by the government applies, rising every six months up to maturity.
- Many websites say KVP can be cashed at will after 2½ years. The scheme text does not say so — check with your post office before relying on it.
Transfer, pledge and death
- It can be pledged as security for a loan with the President or a State Governor, the RBI, a scheduled or co-operative bank, a public or private corporation or government company, a local authority, or an approved housing finance company.
- It can be transferred to another person only: to the nominee or legal heirs on the holder's death; to the surviving holders when a joint holder dies; on a court order; or when pledged as security.
- On the holder's death, up to three surviving nominees or legal heirs can choose to continue it until maturity as if it were their own, or close it.
Tax
- There is no tax deduction for the investment — KVP is not in the list of investments that qualify under Section 123 (Schedule XV of the Income-tax Act, 2025).
- Interest is taxable. You can declare it each year as it accrues, or all at maturity. The post office generally does not deduct TDS on KVP.
Sources
- The Gazette of India — G.S.R. 920(E), 12 December 2019: Kisan Vikas Patra Scheme, 2019
- India Post (RAKNPA) — Kisan Vikas Patra background material
- Income-tax Act, 2025 as amended by the Finance Act, 2026 — Sections 123, 153, 202, 393 and Schedules II and XV
- Small savings interest rates, October–December 2026 — CAclubindia
Rules can change. Always confirm with your post office or bank before investing.
How KVP maturity works
KVP is defined by doubling: the government sets a rate (compounded yearly) and the matching number of months for the money to double.
Maturity = 2 × amount, after 115 months
Example:₹1,00,000 invested today becomes ₹2,00,000 after 9 years 7 months. The values for each year in the table use the 7.5% rate compounded yearly and are indicative — what you receive if you close early depends on the government's table for early closure.
Frequently asked questions
How long does KVP take to double my money?
115 months (9 years 7 months) at the current 7.5% rate for Oct–Dec 2026. The government fixes the doubling period when it sets the rate, and the period on your certificate does not change later.
Can I cash a KVP before it doubles?
The official scheme text allows early closure only on the death of the holder (or a joint holder), forfeiture by a pledgee who is a Gazetted Officer, or a court order. Many websites say KVP can be cashed at will after 2½ years — check with your post office before relying on that.
Does KVP save tax?
No. KVP is not among the investments that qualify under Section 123 of the Income-tax Act, 2025, and the interest is taxable at your slab rate — yearly as it accrues or all at maturity.
Is there a limit on how much I can invest?
There is no upper limit. PAN is required, and larger investments also need proof of the source of funds under the KYC rules for small savings.
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Last updated . For information only — not financial advice. Check the final figures with your lender or bank.