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Consider the following statements regarding Kisan Vikas Patra.
  1. Kisan Vikas Patra is a tax saving instrument where individuals can invest money for betterment of agriculture sector in India.
  2. It is offered in the form of certificates in Indian Post Offices.
  3. There is no upper limit for investment by an individual.
Which of the above statements is/are correct?
  • a)
    1, 3 
  • b)
    2 only 
  • c)
    2, 3 
  • d)
    1, 2, 3
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Consider the following statements regarding Kisan Vikas Patra. Kisan V...
  • Kisan Vikas Patra, popularly known as KVP, is a small savings scheme that is offered in the form of certificates in Indian Post Offices. This savings plan is a fixed-rate savings plan that aims to increase your money once a set length of time has passed that is during 124 months (10 years and 4 months).
  • The account can be opened by any adult or on behalf of a minor. Also, a minor who is above the age of 10 in his own name. While three individuals together can open a joint account.
  • Interest rate for the quarter ending June 30, 2022 is 6.9 % which is compounded annually.
  • 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 or transferred as security.
  • The scheme is not eligible for tax deductions under Section 80C of the Internal Revenue Code, and the returns are fully taxable. Nonetheless, withdrawals after the maturity period are exempt from TDS (Tax Deducted at Source).
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Consider the following statements regarding Kisan Vikas Patra. Kisan Vikas Patra is a tax saving instrument where individuals can invest money for betterment of agriculture sector in India. It is offered in the form of certificates in Indian Post Offices. There is no upper limit for investment by an individual.Which of the above statements is/are correct?a)1, 3b)2 onlyc)2, 3d)1, 2, 3Correct answer is option 'C'. Can you explain this answer?
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