dear sir I am NRI stay in dubai.i have a wife and two kids. i want to buy everymonth KVP for four of us pls let me know how much maximum amount should i buy every month so i wont suffer the time of maturity.and at the time of maturity is thr any tax applicable on my amount if yes then how much tax OR that will be tax free for long term gain????? i will be highly oblized.

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Q	dear sir I am NRI stay in dubai.i have a wife and two kids. i want to buy everymonth KVP for four of us pls let me know how much maximum amount should i buy every month so i wont suffer the time of maturity.and at the time of maturity is thr any tax applicable on my amount if yes then how much tax OR that will be tax free for long term gain????? i will be highly oblized.
	Posted By : sachin , dubai \| On 25.4.2010	Post Answer Post Answer X

Answers

1	Dear Sachin, What i understand by reading your mail is you are looking for long term investments which is useful at the time of retirement or children higher studies purpose. TAX Benefits about KVP : No income tax benefit is available under the Kisan Vikas Patra scheme. Interest income is taxable, however, the deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal. KVP deposits are exempt from Wealth tax.
	Posted By :ananth , hyderabad \| On 30.6.2010