Does the Kisan Vikas Patra investment qualify for tax benefits under Section 80C?
Anita Kumar, Bhopal
Under Section 80C of the Income tax, a deduction of up to Rs 1.5 lakh for investment made in specified instruments are allowed. However, the Kisan Vikas Patra is not under this list of tax savings instruments. You could consider putting money in National Savings Certificate, Public Provident Fund, Equity-linked savings scheme, 5-year term deposit with a scheduled bank and other such similar options where the investments qualify for tax deductions under Section 80C. You should also know that the interest earned on KVP is taxable.
