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KVP - Kisan Vikas Patra - Interest Calculation per year

Tax queries 754 views 4 replies

Hello,

How to calculate interest for Kisan Vikas Patra (KVP) - for each year? 

Is the compounded interest calculated every 6 months or every year? 

There is an old excel sheet in this forum somewhere, but it is password protected and also does not show the calculation part.

Thanks

 

Replies (4)

The interest accrued on the invested in KVP sum is compounded yearly.

In the attached pdf - tentative calculations are shown for KVP with a simple example.

Are these correct in general? Would be grateful - if anyone can advise

How would interest for first FY be calculated when the KVP is bought close to end of that FY.

Thanks

Normally KVP is for 10 years. , So the  calculations be like .......

PERIOD AMT.    INT.     , ...
FEB.18-MAR. 18 1000 12       2 MONTHS
2018-19 1012 74  
2019-20 1086 79  
2020-21 1165 85  
2021-22 1250 91  
2022-23 1341 98  
2023-24 1439 105  
2024-25 1544 113  
2025-26 1657 121  
2026-27 1778 130  
APR. 27 TO JAN. 28 1908 139 2047
Interest can be easily calculated


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