MCQs on Kisan Vikas Patra (KVP) Scheme

21.Interest on KVP is:

A. Tax-free
B. Exempt under Section 10(10D)
C. Fully taxable
D. Deducted at source

The correct answer is: C

22.Does KVP offer any tax deduction under Section 80C?

A. Yes, full amount
B. Yes, up to ₹1.5 lakh
C. No tax benefit
D. Only for senior citizens

The correct answer is: C

23.Transfer of KVP account is allowed in which of the following cases?

A. Change in residence
B. On death of account holder
C. On marriage of account holder
D. On achieving maturity

The correct answer is: B

24.KVP nomination facility is:

A. Not available
B. Compulsory
C. Available
D. Only for single accounts

The correct answer is: C

25.In a joint account, if one account holder dies, KVP account

A. Is closed
B. Is forfeited
C. Transfers to surviving holder(s)
D. Cannot be transferred

The correct answer is: C

26.Which form is used to open a KVP account?

A. Form-3
B. SB-10
C. Form-1
D. GSPR-5

The correct answer is: C

27.Which age group is not restricted under KVP eligibility?

A. Adults
B. Senior citizens
C. Children above 10
D. All of the above

The correct answer is: D

28.What happens to excess deposit beyond the maturity value in KVP?

A. Forfeited
B. Refunded with POSA interest
C. Refunded without interest
D. Added to interest

The correct answer is: B

29.What is the investment tenure of KVP accounts opened post April 2020?

A. 120 months
B. 124 months
C. 125 months
D. 128 months

The correct answer is: B

30.KVP account can be transferred to another location:

A. Only with RBI permission
B. Cannot be transferred
C. Can be transferred anywhere in India
D. Only within same circle

The correct answer is: C
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