The rate of return on Kisan Vikas Patra this financial year is 7.8%. This means that your investment will double in 110 months (9 years 2 months). Therefore, your investment of Rs 5 lakh will grow to Rs 10 lakh. There is no tax exemption available for investing in KVP.
The interest earned on KVP is taxable on accrual basis as Income from Other Sources. There is no TDS applicable on KVP.
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