KVP Accrual Interest Calculation Easily Step by Step (Discontinued w.e.f. 1-12-11)

In this article, we will discuss only about how to calculate the accrued interest on Kisan Vikas Patras. If anyone wants to know about nomination, maturity value, maturity period, encashment, premature encashment go to the KISAN VIKAS PATRAS main article.

Note: Kisan Vikas Patras (KVPs) have discontinued w.e.f 1.12.2011

The following chart will help you to calculate accrued interest on Kisan Vikas Patra. It will help you also to calculate deduction u/80C. Know more about deduction u/s 80C here.

The amount of interest accrued on KVPs of denomination Rs.1000, issued on or after 1.3.2013 is as follows:

YearAccrued Interest

Post-maturity interest: If the amount on maturity is not paid then it shall carry interest from the date of maturity upto date of repayment.  The interest will be payable at POSB A/c rate. The assesse can also get benefit for non-deduction of TDS on Kisan Vikas Patra on maturity or otherwise.

The following chart will help you to understand the amount payable on Premature Encashment. The premature encashment is allowed after 2 ½ years. So the following table will calculate the amount payable for a certificate of Rs.1000 denomination, issued on or after 1.3.2003, on encashment after 2 ½ years.

Completed PeriodAmount PayableCompleted PeriodAmount Payable


2 thoughts on “KVP Accrual Interest Calculation Easily Step by Step (Discontinued w.e.f. 1-12-11)”

  1. KVP doubles. But as per the calculation it works out to Rs.19500/- only. May kindly look into. Also please provide accrued interest calculation for KVP purchased between 2008 to 2011

  2. Please help me to find out the present value of KVPs amounting to Rs.50,000/- (Rupees fifty thousand) only purchased in May 1997 if the same are continuously kept invested in the same form after maturity.

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