Latest Tax Benefits for Investing in the Post Office Monthly Income Scheme POMIS


Most recent update:

Budget 2023-24: The monthly savings scheme's maximum deposit limit is increased from Rs.4.5 lakh to Rs.9 lakh for a single account and from Rs.9 lakh to Rs.15 lakh for a joint account.

The Post Office, like any nationalized bank, has long been a trusted location for money deposits and transactions. This is especially true for the elderly. Post Office branches across the country offer a variety of savings plans.


The Post Office Monthly Income Scheme (POMIS) is one such scheme in which you invest a set amount and receive a fixed interest payment each month. You can invest in this at any post office, as the name implies. In this article, we will discuss the following POMIS topics.


Ministry of Finance / Post Office Monthly Income Scheme | POMIS

@indiapost.gov.in: The Post Office Monthly Income Scheme (POMIS) is an investment scheme recognised and approved by the Ministry of Finance. With a 6.6% interest rate, it is one of the highest earning schemes. Interest is paid monthly under this scheme. Individuals can open a POMIS account and invest a suitable amount based on their affordability.

Monthly income earned through the post office: this should not be less than 1500. It provides a low-risk, stable income stream in which the investor can deposit money every month and earn interest in MIS at the post office at the applicable monthly rate. The respective post office provides monthly income on investment.






Contents

  • The Scheme's Characteristics
  • The Advantages of the Post Office Monthly Income Scheme
  • Interest rates at the moment
  • Investment Information for the Post Office Monthly Income Scheme:
  • Maximum investment allowed
  • Special Remarks:
  • Post Office Monthly Income Scheme Eligibility
  • The Application Procedure
  • Offline
  • Documents required
  • Important connections
  • Questions and Answers



The Scheme's Characteristics


  • Maturity - The India Post Office Monthly Income Scheme has a maximum tenure of 5 years.
  • A Post Office MIS can be held by a minimum of one and a maximum of three people.
  • Nomination- Following the death of the investor, only the nominee will be entitled to all of the scheme's benefits. After opening the account, the nominee may be assigned later.
  • Individuals can transfer their MIS accounts to any post office in India.
  • POMIS Bonus- Accounts opened after December 1, 2011 do not have the bonus option. Those who opened before that date, on the other hand, receive a 5% bonus.
  • Tax ability- No income generated by this scheme is subject to TDS or tax deduction. The Post Office Monthly Income Scheme provides no tax benefits.

The Advantages of the Post Office Monthly Income Scheme



  • Capital security-the government backs it, and the returns are guaranteed.
  • Post Office Monthly Income Online Scheme is a low-risk investment with no market capitalization risk.
  • Lock-in Period- There is a 5-year minimum lock-in period that can be withdrawn after maturity.
  • Affordability of premium amount- The monthly premium is low in comparison to other plans and can be easily paid.
  • Inflation-proof - Even during periods of high inflation, an investor can earn a monthly income.
  • Multiple Fund Owners - As joint holders, multiple owners can hold an account.
  • Transaction Ease- Money transactions, including deposits and withdrawals, are extremely simple.


            Interest rates at the moment

            • 1st January 2023 - 31st March 2023         7.10%
            • 1st October 2022 - 31st December 2022 7.10%
            • 1st April 2020 – 30th September 2020         6.60%
            • 1st January 2020 – 31st March 2020         7.60%

            Investment Information for the Post Office Monthly Income Scheme

            • Single Account – Minimum amount to deposit is ₹1500 and maximum is ₹4,50,00 .
            • Joint Account – Minimum investment amount is ₹1500 and maximum is ₹9,00,000.
            • Minor Account – Minimum investment amount is ₹1500 and maximum is ₹3,00,000.

            Maximum investment allowed

            Single Account: ₹4,50,000; Joint Account: ₹9,00,000; Minor Account: ₹3,00,000

            Special Remarks

            • For example, if an investor invests ₹1,00,000 for 5 years with a monthly interest of 6.60%. Fixed monthly income will be ₹ 550 as per post office MIS scheme.
            • Post Office Monthly Income Scheme for Senior Citizens is 6.6%.
            • The minimum lock-in period for Post Office Monthly Income Scheme 2021 is 5 years.


            Post Office Monthly Income Scheme Eligibility

            • Applicant must be a citizen of India.
            • Applicant should be a resident of India.
            • Applicant must be at least 18 years of age.


            Note: You can open an account on behalf of a minor aged 10 years or above. When the children reach the age of 18, they will be able to access the fund. After reaching the age of majority, the minor must apply for account conversion in his name



            The Application Procedure Offline

            Follow the steps below to open an account under the Post Office Monthly Income Scheme.

            • You must first have a Post Office Savings Account. If you don't already have one, create one.
            • Get the POMIS account application form from your post office or download it from the following link: https://www.indiapost.gov.in/VAS/DOP PDFFiles/form/Accountopening.pdf
            • Fill out the form and bring it to the post office with self-attested copies of all required documents. You must bring original documents for verification.
            • Mention your name, date of birth, and phone number. Nominee (if any) (if any)
            • Proceed to make your initial cash or check deposits (minimum of Rs. 1000/-).

            Documents required

            • Identity Proof: Copy of Government issued ID like Passport/Voter ID Card/Driving License/Aadhaar etc.
            • Proof of Address: Government issued ID or recent utility bill.
            • Passport size photographs

            Important connections

            Official website Click here


            Questions and Answers

            In the case of a joint account, how is the individual account holder's share calculated?
            • Each joint account holder owns an equal share of each joint account.

            What if I don't want to withdraw my deposit when the account matures?
            • If you do not withdraw the deposit amount at maturity, the money will remain in the account and earn simple interest in accordance with the Post Office Savings Account for a period of two years from the account maturity.