Interest Inome

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 Sir

A Senior Citizen has invested his money in Kisaan Vikaash Patra (KVP) by total sum of 2000000 for period 8 years and 7 months, then what will be the Intt.Income for One year

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 July 2011 Interesting details compiled from Bajaj Capitals site -
Created/updated on: 03/02/2007.

1. Minimum Investment Rs. 500/- No maximum limit.

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2.Rate of interest 8.40% compounded annually.

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3. Money doubles in 8 years and 7 months.

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4. Two adults, Individuals and minor through guardian can purchase.

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5. Companies, Trusts, Societies and any other Institution not eligible to purchase.
Non-Resident Indian/HUF are not eligible to purchase.

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6. Facility of encashment from 2 ½ years.

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7. Maturity proceeds not drawn are eligible to Post office Savings account interest for a maximum period of two years.

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8. Facility of reinvestment on maturity.

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9. KVP can be pledged as security against a loan to Banks/Govt. Institutions.

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10. KVP are encashable at any Post office before maturity by way of transfer to desired Post office.
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11. KVP are transferable to any Post office in India.

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12. KVP are transferable from one person to another person before maturity

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13. Duplicate can be issued for lost, stolen, destroyed, mutilated and defaced KVPs.

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14. Nomination facility available.

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15.Facility of purchase/payment of KVP to the holder of Power of attorney.

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16. Deduction u/s 80 C not admissible.

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17.Interest income taxable but no TDS

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18.Deposits are exempt from Wealth tax.

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