Kisan Vikas Patra (KVP), discontinued in 2011, has been re-launched on 18th November to boost small savings. KVP does not offer any tax advantage, just like bank fixed deposits.
It is also not part of 80C deduction. The reason for its popularity earlier was investment in cash, ease of transfer and liquidity. The government has now introduced know-your-customer (KYC) for small savings schemes but for KVP there is no need to submit PAN for investment of less than Rs50,000.
The minimum denomination is Rs1,000 and there is no ceiling on investment. KVP will mature in eight years and four months (100 months) which was the period to double your money without tax consideration. The rate of return will be 8.67% without considering tax. It will allow premature withdrawal (with conditions) after two and half years or in case of accountholder’s death. KVP will be available with post-offices and designated branches of nationalised banks. It can be an option for those with zero tax liability or those who having limited access to banks.
Gift deeds will be valid only if they have been registered, the stamp duty paid, and all other formalities completed, the Bombay High Court recently said in a ruling. The ruling came on a battle between two sisters over their mother’s bungalow at a prime location in Chembur.
Leena D’Souza, who had claimed her family had been gifted the bungalow by her mother, was stopped from selling or creating any third party rights over the property. The reason: the gift deed, reportedly made in 1985 was registered only in 2009, 10 years after the mother’s death in 1999.
Justice Roshan Dalvi rejected Leena’s plea to vacate its interim orders, on a petition filed by the other sister, that the bungalow must come to all heirs, according to the mother’s will. The judge noted that all gift deeds have to be compulsorily registered and it becomes valid only after stamp duty and other formalities are completed.