Post Office Monthly Income Scheme
About Post Office Monthly Income Scheme
Post Office Monthly Income Scheme (POMIS) is an investment scheme recognized and validated by the Ministry of Finance. It is one of the highest-earning schemes with an interest rate of 6.6%. The interest in this scheme is disbursed monthly. After opening a POMIS account, individuals can invest a suitable amount based on affordability, which, however, should not be less than ₹1500. It provides low risk and steady income where an investor can deposit every month and get interested of MIS in the post office according to their applicable monthly rate. The income on investment is given by the concerned post office every month.
Features of the POMIS scheme:
- Maturity period- The maximum tenure of the Indian post office monthly income scheme is 5 years.
- Number of holders- At least 1 and at most 3 individuals can hold post office MIS.
- Nomination- Only the nominee will get all scheme benefits after the investor’s demise. Nominee can be assigned later on after opening an account.
- Transfer- Individuals can transfer their MIS account in one post office to another anywhere in India.
- POMIS bonus- Accounts opened after 1st Dec 2011 have no bonus facility. However, those opened before that enjoy a 5% bonus.
- Taxability- Any income from this scheme does not come under TDS or tax deduction. The post office monthly income scheme tax benefit is zero.
Who is Eligible
- The applicant must be a citizen of India.
- The applicant must be residing in India.
- The applicant should be at least 18 years old.
Note: You can open an account on behalf of a minor who is 10 years old or older. When kids reach the age of 18, they will be able to access the fund. After reaching the age of majority, a minor must apply for conversion of the account in his name.
Frequently Asked Questions
- How Can I Withdraw Money From My POMIS Account After The Tenure?
You can withdraw the deposited amount from the account either from the post office or you can also get it credited in your savings account through ECS. You can follow the usual way and withdraw the amount monthly. However, the investor is allowed to let some amount accumulate and withdraw it all together after a few months.
- Can I Transfer POMIS Account?
Yes, your account can be transferred from one post office to another for absolutely free.
- Can I Reinvest My Accumulated Amount In POMIS?
This is one of the best features of this scheme. It allows the investors to reinvest their accumulated money at the end of the tenure.
- Is There Any Tax Deduction At Source?
No, there is no TDS (Tax Deduction at Source). But, the interests earned are taxable.
- Is There Any Nomination Facility Available In POMIS?
Yes, the scheme allows you to select and appoint a nominee against the account who will get the accumulated amount in case of unfortunate demise.
- Does The Scheme Offer Tax Rebate?
No, POMIS does not offer any tax benefits under Section 80C of the Income Tax Act, 1961.
- Can A Senior Citizen Also Invest In POMIS?
Yes, infact POMIS is most suitable for senior citizens and retired persons.
- From Where Can I Get The Withdrawal Form Of POMIS?
You can get the withdrawal form directly from the post office or download it from the India Post website.
- What Happens When The Investor Does Not Withdraw The Funds After 5 Years?
After the maturity of 5 years, if the investor does not withdraw the amount, then he will continue to earn a simple interest for up to 2 years (as per the post office savings account interest rate).
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