The Kisan Vikas Patra (KVP) can be purchased from any post office across the counter. The KVP carries a rate of interest of 7.7% and matures in a period of 112 months. KVPs can be purchased from any post office and can either be purchased by an adult in his/her own name on the name of a minor. The minimum denomination for investment in KVP is Rs.1000 and there is no upper limit for investment in KVP. Investors need to remember one important thing about KVPs. The interest is paid out only on maturity, but the accrued interest must be shown as income each year while filing your tax returns and tax needs to be paid accordingly. It needs to be remembered that KVP used to be eligible for tax exemption but is no longer eligible for any tax exemption under Section 80C of the Income Tax Act. KVP instruments are easily transferrable and can also be offered as eligible collateral to take loans.