The account can be opened by any adult or in the name of a minor. Also, a minor over the age of 10 in his own name. While three people together can open a joint account.
Interest rate
The interest rate for the quarter ending June 30, 2022 is 6.9%, compounded annually.
How much investment can be made
There is no upper limit and the minimum is Rs. 1000 in multiples of Rs. 100. One can open any number of accounts.
KVP can be pledged and transferred
KVP can be pledged or transferred as collateral by submitting a regulated application form, along with a letter of acceptance from the pledgee.
The transfer/pledge can be made to the following authorities.
-> The President of India/Governor of the State.
-> RBI/Scheduled Bank/Cooperative Society/Cooperative Bank.
-> Company (public/private)/Gov. Company/local authority.
-> Housing finance company.
Premature closure of the KVP
KVP can be closed before maturity at any time if the following conditions are met:-
(i) When a single account, or all or some of the account holders in a joint account, dies.
(ii) In case of confiscation by a pledgee being an officer of the Gazette.
(iii) If ordered by the court.
(iv) After 2 years and 6 months from the filing date.
(v) Account transfer from one person to another person
Fiscal advantages
The plan is not eligible for tax deductions under Section 80C of the Internal Revenue Code, and the returns are fully taxable. However, withdrawals after the maturity period are exempt from TDS (Tax Withheld at Source).
To pass from one person to another person, here are the criteria according to La Poste:
(i) On the Account Holder’s death to the named/legal heirs.
(ii) On the death of the account holder to the joint holder(s).
(ii) By court order.
(iii) On pledge of account to specified authority.
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