KVP Tax Calculator

KVP earns no Section 80C deduction, in either regime

The most consequential thing people get wrong about it, and an easy mistake: NSC, PPF, the Sukanya Samriddhi account and the five-year tax-saving deposit all qualify under Section 80C, and all four are sold at the same post office counter. KVP does not, and never has. So the regime that decides the answer on almost every other page here changes nothing at all on this one — there is no deduction to lose.

Nor is anything withheld. No TDS is deducted on KVP, so the whole ₹31,200 is yours to pay through advance tax or when you file, with no certificate arriving to prompt it. And unlike NSC there is no deemed reinvestment to set against the accruing interest — it is simply taxable, every year, in full.

Illustration only, computed from the assumptions shown — not a forecast, a projection of any product's performance, or a guarantee. Rates, prices and rules change, so the actual outcome will differ.

Year by year

Interest compounds annually and is taxable in the year it accrues, though nothing is paid to you until the certificate matures. The final row is a part year, because the doubling period does not land on a whole one.

Illustration only, computed from the assumptions shown — not a forecast, a projection of any product's performance, or a guarantee. Rates, prices and rules change, so the actual outcome will differ.

What this assumes

• One rate for the whole period. The government resets it quarterly, and the doubling period moves with it. A certificate already bought keeps the rate it was issued at, so this models a single issue rather than a rolling one.
• Interest is declared on accrual. Declaring the whole of it at maturity instead bunches nine years of income into one year, which usually costs more rather than less.
• Whether Section 80TTB reaches a certificate is not settled. That relief is written for deposits, and a certificate is arguably not one — so no senior citizen relief is modelled here either way.
• A certificate cannot be encashed for the first 30 months except on death or a court order, and thereafter at a value set by the scheme’s own table rather than the full accrued amount. Surcharge is excluded; the 4% cess is included.

No returns are assured or guaranteed. Any illustration of returns is a mathematical projection, not a promise. Kisan Vikas Patra is a Government of India small savings scheme issued through post offices. GrowIQ Capital is a mutual fund distributor, neither distributes it nor provides tax advice — this is arithmetic on the figures you entered, for discussion with a qualified tax adviser.