Post Office Monthly Income Scheme (MIS) is meant for investors who want to invest a sum amount initially and earn interest on a monthly basis for their livelihood. The scheme is, therefore, more beneficial for retired persons.
Recent Changes in the scheme :
|Eligibility||Any individual singly or jointly with other one or two adults.
A guardian on behalf of minor or a person of unsound mind.
A minor who has attained the age of 10 years.
|Minimum amount||₹ 1,500/-|
|Maximum amount||₹ 4.5 lakhs in single account and ₹ 9 lakhs in joint account.
Where amount is deposited in excess of the specified limit, the depositor shall be requested to withdraw the same. Such excess deposit swhall carry the POSB interest rate from the date of deposit till the date of withdrawal.
Any number of accounts can be opened subject to the maximum prescribed limit for deposit.
|Maturity period||Six years for accounts opened upto 30th November 2011. |
Five years for accounts opened after 1st December 2011.
|Premature withdrawal||Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.)
No bonus is applicable to any premature closure of the Account.
|Tax benefits||Not available.|
|Interest Taxability||With effect from 1st April 2018 (AY 2019-20) Senior Citizens (i.e. Residents aged 60 years or above) are eligible for exemption of interest income from Bank / Post Office deposits (Saving accounts / Time deposits / RD accounts) upto ₹ 50,000/- under Section 80TTB. (They are, however, not eligible for rebate under section 80TTA.)
Account holder other than Senior Citizens are not eligible for any exemption.
|Agency Commission||0.5% w.e.f. 1st December 2011.|
Finotax.com does not make any claim that the information provided on its pages is correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.