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Post Office Monthly Income Scheme (POMIS) is a good option for individual looking for a fixed return on their investments. Find out its features, rate of interest and other benefits.

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Post Office Monthly Income Scheme (MIS)

If you are looking for a decent capital gain with a secured investment option then Post of Monthly Income Scheme (POMIS) may end your search. Generally, we end up parking our funds in fixed deposits and in other debt investments plans but POMIS promises better benefits as compared to others. Lets have a look at what POMIS is, how it functions and what all it offers.

Post Office Monthly Income Scheme plan is one of the many investment options offered by Post Office in India. Apart from delivering mails, post office offers a bouquet of services that include sale of forms, bill collection, savings schemes, life insurance cover etc.

Schemes offered by Post Offices are risk free as there is no touch of equity in them. POMIS is also one such scheme. Let us have a look at the features and benefits of POMIS.

Benefits & Features of Post Office Monthly Income Scheme Account
  • Minimum investment amount is Rs.1500/- or in multiple thereafter.
  • A single account can hold maximum amount up to Rs. 4.50 lakhs and in case of a joint account Rs.9 lakhs is permissible.
  • Interest rate of 8.5% per annum payable monthly w.e.f. 01.04.2012
  • Maturity period is 5 years.
  • Claiming Bonus on Maturity has been undone w.e.f. 01.12.2011.
  • Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.
  • You can avail a facility of premature closure of account after 1 year but on or before 3 years @ 2.00% discount.
  • There would be a Deduction of 1% if account is closed prematurely at any time after three years.
  • There is no Tax rebate
  • Tax Deduction at Source (TDS) is not applicable.        
  • This scheme provides minors with a separate limit of investment of Rs. 3 lakhs and the same is not compiled with the limit of guardian.
  • It also provides you with auto credit facility of monthly interest to saving account if both accounts are at the same post office.
  • Deposits are also exempt from wealth tax.
  • Opening of this account by Non-Resident Indian / HUF is not permissible.
  • Nomination facility is also available under this scheme.
  • You can also avail the facility of reinvesting your amount on maturity of the account.
Documents Required for Post Office Monthly Income Scheme
  • Address Proof
  • Two passport size photographs
  • Identity Proof – This may include
         i)  Passport
        ii) PAN Card
       iii) Ration Card
       iv) Voter Identity Card issued by the Election Commission of India

You will be required to carry all the original documents for verification at the time of opening the account.

This scheme serves to be an ideal choice specially if you are a retired employee or a senior citizen as it brings home regular monthly income. This scheme is secure and risk free and ensures guaranteed return.

Though there is no Tax deduction at source but it is important to note that POMIS does not fall under the purview of Section 80C and thus you cannot claim for any tax exemption for the amount that you have parked in the scheme and the interest thus earned is taxable.

If you wish to get yourself registered with this scheme you can deposit money through demand draft, local cheque or cash. When you get enrolled with this scheme you will be issued a certificate of the scheme and also a passbook that will hold your transactions against the POMIS.

You can withdraw your amount on monthly basis or you may also keep it idle in the account and let it accumulate for few months and then withdraw it but it will not earn you any interest. To make it more convenient for you, you may get the monthly income auto credited in your savings account provided you have a savings account in the same post office where your scheme is running.

You may also combine your post office monthly scheme with a recurring deposit. You may invest the amount that you monthly earn through this scheme in a recurring deposit. By doing so you will be able to churn more capital gains in a more secured and risk free manner.

As stated earlier, this scheme also provides you with the facility of nomination. You can give the name of your nominee when you begin with the scheme or you can also do it during the course of the scheme. In the event of demise of the account holder, the money is paid to the nominee.

POMIS account can also be transferred from one post office to any other post office across the country without incurring any extra cost bringing smiles to faces who are constantly hopping from one place to another.

If churning decent capital returns without getting caught up in equity affair is on your mind or if you are a senior citizen or retired person who is looking for a monthly income then Post office monthly scheme could be a good investment option.

  • satyaban barick:
    i am more than 60 years.i want to be the member m i s .let me know the returns per month.
    22-Sep-2016 09:26 PM
    Respected Madam ,
    I and my mother had opened a joint account in MIS Post office in 2010 of 300000/- , monthly 2000/- interest what we were getting . Account first name was of my mother & second my . My mother expired in 2012 & now in 2016 the account got matured. I want to know that do i am applicable for tax on matured amount & how much.
    09-Sep-2016 04:54 AM
    I got MIS at Post Office and five years over. I got information that it will be expired only after six years.
    - could you pls let me know the total duration for the deposit for five years or six years.
    - i deposited 3,30000.00 at time and five years over.
    - if I want to close the account now what benefits I will loose.
    07-Sep-2016 05:07 AM
  • D M Deshpande:
    current rate interest is not mentioned
    27-Aug-2016 07:09 PM
  • Rajendra Chandra:
    Dear Sir,
    Why bonus facility is stopped on it when every body is trying to gain more and more money. Even MP pms are changing their salary say Rs. 75000 pm to Rs. 20000 pm. It our grief objection only.
    Thanks and regards.
    26-Aug-2016 08:43 AM
  • G.Shiva sai:
    can i open an R.D account with amount i get through investment of rs.1lakh in Post office. If yes, what is the amount can i get to put it in R.D
    01-Aug-2016 05:08 PM
  • adnan ghori:
    I am abroad I need to invest 450000 for 5years what documents you needed. What will be yearly amount I will get
    31-Jul-2016 07:35 PM
  • Manan Chatterjee:
    Please let me know whether (i) Bonus paid on maturity of MIS is taxable (ii) Principle amount of MIS is taxable on maturity (iii) If yes, then it'll be under which section of IT.
    30-Jul-2016 01:48 AM
  • pramod kumar chandna:
    Can you please mail me the latest post office MIS details ? I want to do it soon.
    Thank you.
    27-Jul-2016 04:52 AM
  • anil kumar sharma:
    i am a senior citizen .made investment in POMIS.
    what are the taxation policy on benefit earned over principle .
    1 interst
    2 bonus

    how to get precise details for taxable amount for it return.
    26-Jul-2016 05:23 PM
  • Goutam Chattopadhyay:
    As per rule displayed in the Indiapost web page - A minor aged more than 10 yrs can open & operate the MIS also some other account. In that case what are the doccuments required from the minor.
    25-Jul-2016 03:18 AM
  • hemendra shah:
    dear sir

    i want to know MIS maturity period a/c opened on 19/07/2011
    23-Jul-2016 06:20 PM
  • GS:
    Just look how each central govt is befooling the native people. Earlier PO MIS was really lucrative for a regular income @8% pa for a tenor of 6 yrs with a maturiy bonus of 7.5% then in the year 2011, the so called secular cheats reduced the tenor to 5 yrs and abolished the bonus but raised the interest rate to 8.4%. Up to this, the situation was somehow acceptable. Now the sangh paribar cheats additionally reduced the interest rate to 7.8%! Where is the charm now?
    09-Jul-2016 03:14 AM
    There was an MIS in the name of my mother, jointly with me. My mother expired on 10.06.2016 and the said MIS was matured on 18.06.2016 and the maturity value and bonus has been credited to my account. I have reinvested the entire matured amount alongwith bonus again to open the new MIS in my name.
    In the above respect, I want to know whether the bonus received on maturity will be taxable?
    04-Jul-2016 02:30 AM
  • Mahesh Desai:
    What is procedure to see the account balance of MIS on line. Please let me know.
    14-Jun-2016 10:24 PM
  • B ISLAM:
    14-Jun-2016 06:58 PM
  • Bhanu pratap singh:
    Sir 200000/ M l S par kitna intrest milega?
    01-Jun-2016 03:41 AM
    post office me m.i.s. intrest rate kya hai
    26-May-2016 08:35 PM
  • arjun:
    a person has illegally opened 3 single MIS accounts each with rs. 4.5 lacs in different post office. what legal actions can be taken against him? where can we file a complaint against him?
    21-May-2016 07:18 PM
  • Debasish Chatterjee:
    At present MIS Interest rate ?
    17-May-2016 10:38 PM
  • H C BHOI:
    Respected sir , plz intimate how much returns permonth if we invest 9 lac Rs. through pomis
    10-May-2016 02:54 AM
  • Vinay:
    Hi. I want to apply for Post office small savings agency. I have my recd my police verification certificate, MLA's character certificate. but to get second character certi. I am confused. my area school is saying to visit the school you have studied we cannot do this. My school principal is went on 1 month leave. now what i can do?
    (1) is my area police station is authorised for the same? The officer who signed on my police verification certificate.
    (2) any other option i can go for?
    09-May-2016 10:11 PM
  • Babulal Maulik:
    1% or 2% charges for premature withdrawal of MIS should be waived because MIS is done mostly by retired persons who may need cash at any time for foreseen contingencies like son/daughter's marriage or for critical illness or for constructing their dwelling houses. It should be remembered that a retired person does not have any other source of income. So is it their fault to withdraw their hard earned money that they have deposited with Post Offices to earn some return ?
    09-May-2016 09:06 PM
  • Siddhartha:
    Hello ,
    I have a MIS account in Kolkata , I want to shift to another post office is that possible i can shift. Could you please guide me with the procedure.
    22-Apr-2016 03:33 AM
    What is the rate of interest at present in Monthly Income Scheme at Indian Post Office? Is there any difference in rate of interest at MIS for senior citizen?
    21-Apr-2016 03:57 AM
  • mazhar:
    what is elss, ppf, NPS pls send me detail of this investment and difference between this scheme thanks
    20-Apr-2016 11:09 PM
  • Debasish Chatterjee:
    Current Post Office MIS interate from 1.4.2016 ?
    15-Apr-2016 10:17 PM
  • balasaheb chandel:
    Respected Mam i want to know detail information about the every month installment amount and return amount in tabuller format please mail me
    02-Apr-2016 11:37 PM
  • Nidhir Roy Chowdhury:
    What is your best tax saving plan in financial year 2016 - 2017 .
    Please send me detail
    31-Mar-2016 12:39 AM
  • D.N.Chauhan:
    Whether the limit Rs. 9 lakh amount for joint A/C is expected to be increased after 7th pay commission is effective.
    30-Mar-2016 10:59 PM
  • Tapan Kumar Bhattacharya:
    Pl confirm me what is the interest rate at present on MIS that I should get. I want to deposit before March 16.
    Shall I get the interest rate @ 8.5% or less
    21-Mar-2016 10:47 PM
  • Shailesh :
    Dear Madam, I would like to know the best investment in Bank or Post Office where can get a handsome amount after 15-20 years at the time of retirement. Now my age is 33Y. I have done PPF in bank, apart from this I would like to know.
    14-Mar-2016 12:51 AM
  • G. Balachandran:
    Can the Post Ofice MIS deposit can be renewed after 5 years and if so what will be the period of deposit?
    03-Feb-2016 02:20 AM
  • Rajendra Agarkar:
    Is investment in POMIS also considered as invested in a pension scheme. I want to invest the money that i get from superannuation into the MIS. Will the amount which I withdraw from the Superannuation fund be treated as tax free in that case.
    14-Jan-2016 01:34 AM
    13-Jan-2016 03:46 AM
    07-Dec-2015 10:20 PM
    I have MIS A/C in post office , every month i am drawiing my amount ,but i have missed to

    take the amount, i dont have S/B Account in post office. how to check in post office. kindly

    help me
    02-Dec-2015 07:46 PM
    I opened in 2009 two accounts (1) in the name of self, wife and brother for Rs.9 Lac and (2) in the same order of names for Rs.4.5 Lac. PO says now after 5 years that this is beyond permissible limits and that I have to refund excess int. paid to me. Is it correct ? PO is waking up after 5 years and saying irregular. Am I entitled to some interest till the date of payment ? Both accounts matured on 16 September 2015. I wd appreciate an early response please. Thanks.
    14-Nov-2015 05:23 PM
  • subhasis bandyopadhyay:
    andul-mouri post office mis interest rate is given 8.4%,but you are showing it 8.5%.why this anamoly? recently i and my wife open mis a/c. amounting Rs. 3lac each. please lok in to the matter and give necessary instruction to the post master andul-mouri,howrah,w.bengal,711302. regards.
    13-Nov-2015 08:21 PM
  • Ramaswamy.H:
    DoesPost office have provision for loans against Deposits under the monthly income scheme?
    09-Nov-2015 05:03 PM
  • Sougata Sengupta:
    I am a private employee, paying TDS every year, My wife is Housewife, not in income tax group. If I want to open a joint MIS in Post Office, the interest earned is taxable for entirely me or my wife or jointly taxable?
    07-Aug-2013 02:53 PM
    • bharat: my wife is housewife, i want to open a joint m/s in post office the interest earned is taxable for entirely me or my wife or jointly taxable?
      17-Dec-2015 11:11 PM
    • M.C.JOSHI: I am a senior citizen & my wife is Housewife, not in income tax group. If I want to open a joint MIS in Post Office, the interest earned is taxable for entirely me or my wife or jointly taxable?
      08-Mar-2016 09:30 PM
    • joseph: Sougata,
      Did you get answer for this?
      06-Apr-2016 11:15 PM
    I have some investment as 3rd holder in POMIS. Can I invest more as 1st holder in POMIS afresh as per the limit fixed for the scheme ? Suppose If I am having Rs. 6 lakhs investment in POMIS as 3rd holder, can I invest as first holder of Rs. 4.5 lakhs or more ?
    15-Jun-2013 07:31 PM
  • veer:
    if i want to invest 10 lacs then what is the procedure. and please let me know whether there is any bonus upon maturity?
    15-Jun-2013 01:38 PM
    • vijay singh: what's the rate of interest in MIS from 01.04.2016
      15-Jun-2016 08:20 PM
    • santosh kumar: What is procedure for more than 10lakhs invest.
      30-Jun-2016 11:28 PM
  • surendra kumar:
    My account in post office mis was opened in April 2007. will i get bonus?
    30-Apr-2013 02:10 PM
    • chhaya shah: you will not get bonus. because bonus was from Feb 2006 to Dec 2007 and from Dec 2007 to Nov 2011 there is only 5% bonus and there after no bonus.
      28-May-2013 01:49 PM
  • Ruchi:
    I have a MIS account in joint name with my father, I am moving to a different city and my father is moving to differen city. Can I get this account transferred to my city ?
    27-Apr-2013 10:14 AM
  • suresh prajapati:
    it is tax free,,,,????and i want to invest minmum for it possible
    14-Feb-2013 12:19 PM
  • swatantra kumar sharma:
    its good for satisfaction. its really good
    29-Jan-2013 09:43 PM