KVP premature closure is allowed once 2 years and 6 months have passed since you bought the certificate; what you collect then comes from an official encashment schedule that steps up each half year. Inside those 30 months, the certificate opens only for a holder's death, a court's order, or a pledgee lender.
This page gathers the KVP rules savers trip over: lock in, encashment, limits, PAN and income proof, transfer, nominees and tax. For returns, see the KVP scheme hub.
At a glance
Full form
Kisan Vikas PatraLock in
2 years 6 monthsEarly value
From the encashment tableMaximum limit
NonePAN
Needed at ₹50,000 and aboveTax
Interest taxable, no deduction
KVP premature closure: when and how much
| Held for | Can you encash? | You get |
|---|---|---|
| Under 1 year | Only on death, court order or pledge forfeiture | Face value, no interest |
| 1 year to 30 months | Only on death, court order or pledge forfeiture | Value at a reduced rate |
| 30 months onward | Yes, any reason | Table value, rising every 6 months |
| 115 months | Maturity | Double the amount |
On ₹1 lakh at the current rate, the 30 month value is roughly ₹1.19 lakh. The KVP calculator gives yearly estimates; the counter has the exact table.
How to close a KVP early
- Check the purchase date on your receipt or passbook; you need 30 months.
- Fill the closure form at the post office where the certificate is held.
- Bring identity proof and, for joint certificates, all holders' signatures.
- Pick between a credit to your linked account and a cheque.
KVP lock in period, limits and age rules
- Lock in: 2 years 6 months, after which encashment is free of conditions.
- Maximum limit: none; ₹1,000 upward in ₹100 steps.
- Age limit: adults of any age; minors through a guardian; children of 10 and over in their own name.
- Documents: PAN for ₹50,000 or more; proof of the source of funds, such as salary slips or a tax return, for ₹10 lakh or more.
Is KVP interest taxable
Yes. KVP gives no deduction on the purchase, and the interest is taxable either as it accrues each year or in full at maturity. No TDS is cut. Reporting yearly spreads the tax over many years and usually keeps it lower. Is KVP tax free? No; that is a common misunderstanding, perhaps because there is no TDS.
KVP premature withdrawal and withdrawal rules in short
KVP withdrawal rules boil down to one date: 30 months from purchase. Before it, KVP premature withdrawal needs a special reason; after it, you can walk in and encash. The KVP locking period is therefore two and a half years, even though maturity is much later. Is KVP interest taxable or not? Taxable. Is there a KVP age limit? No upper age, and children can hold it through a guardian.
Transfer, pledge and nominee rules
KVP is unusually portable. It can be transferred to another person with post office approval, moved between post offices, and pledged to banks or other approved lenders. A nominee can be added at purchase or later; on the holder's death, the nominee can encash it early or ask for transfer and hold it to maturity.
KVP full form, and other meanings of kVp
In savings, KVP means Kisan Vikas Patra. In medicine and X ray work, kVp means kilovoltage peak, a setting on the X ray machine; that has nothing to do with this certificate. If you were looking for the KVP full form in post office documents, it is always Kisan Vikas Patra.
Common problems and fixes
| Problem | Fix |
|---|---|
| Need money before 30 months | Pledge the KVP for a loan |
| Lost old paper certificate | Request a replacement backed by an indemnity bond |
| Holder moved city | Request transfer to the new post office |
| Large purchase delayed | Bring income proof for ₹10 lakh and above |
Compare these rules with NSC's on NSC rules and see NSC vs KVP.
Frequently asked questions
Can I close KVP before maturity?
Yes, after 2 years 6 months, at the table value. Earlier only in cases of death, court order or pledge.
What is the KVP lock in period?
2 years 6 months.
Is KVP interest taxable?
Yes. There is no deduction and no TDS, but the interest must be reported.
Is there a maximum limit in KVP?
No. Above ₹10 lakh, you must show proof of income.
What is the full form of KVP?
Kisan Vikas Patra.
Can I transfer my KVP to my child?
Yes, with the post office's approval, as KVP is transferable.