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    Post Office MIS Tax Benefits

    Institution Name
    Deposit Amount Range
    Tenure Range
    Interest Rate
    Up to ₹1Cr
    1 Year to 5 Years
    7.1% - 7.9% Quarterly compounding
    Response Time Within 30 minutes
    Fixed Deposit BYTES FROM OUR KITCHEN

    Overview of Post Office Monthly Income Scheme

    If you are searching for a good capital gain with a safe investment prospect, then Post Office Monthly Income Scheme (POMIS) could be your last stop. Yes, aside from providing mails, post office offers a slew of services that entails sale of forms, utility bill collection, lucrative savings plans, life insurance covers etc. Usually, people tend to park their funds in fixed deposits and in other mortgage investments policies. But POMIS assures you better perks compared any other similar financial product. Savings Policies offered by Post Offices are hassle free and risk free as there is no touch of equity in them. This policy serves to be a perfect option, particularly if you are a retired government employee or a senior citizen as it fetches home a fixed monthly income just like your pension. It is secure and risk free and ensures guaranteed return.

    Post Office MIS Tax Benefits & Other Features:

    Let us take a look at the tax benefits and other features you can avail from this scheme.

    • Your deposits are exempted from Wealth Tax.
    • NRIs and Hindu Undivided Families (HUFs) are not eligible to start a POMIS account.
    • It comes with a feature of automated credit of interest earned per month to another post office savings account of yours if both are in the same post office.
    • Remember that you cannot earn further interest on your assimilated returns if not withdrawn.
    • If the account is in the name of a minor (below age 18), there is a distinct limit of investment, which is only up to INR 3 lacs. And this is not joined with the limit of parent/ guardian.
    • A single Monthly Income Scheme Account can be converted into joint Account and vice versa.
    • There is no Tax rebate or Tax Deduction at Source (TDS) applicable.
    • Same as no tax deduction at source, this scheme will not come under the umbrella of Section 80 – C of Income Tax either.
    • Interest rate offered is 8.4 percent annually which will be paid out every month.
    • The maturity tenure for POMIS is five years.
    • There will be no bonus upon maturity.
    • The least deposit amount for the scheme is INR 1500 or multiples of 1500.
    • You cannot put in more than INR 4.50 lacs in a single account and INR 9 lacs in a joint account.
    • There is a unique facility for untimely closure of account after completing one year.
    • Closing after first year and before completing three years will attract two percent deduction.
    • Expect a deduction of one percent if the account is closed early after completing three years.
    • This a perfect scheme for superannuated employees, senior citizens and those who looking for a fixed monthly income.
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