If you are a job person and want to earn extra money every month besides your job, then a special scheme of a post office can fulfill your desire. However, you will have to make a lump sum investment in this scheme and under this scheme, you will be guaranteed a maximum income of a certain amount depending on your investment every month. The name of this special post office scheme is ‘Post Office Monthly Income Scheme’.
Table of Contents
- 1. What Is Post Office Monthly Income Scheme (MIS)?
- 2. A Brief Account On POMIS:
- 3. How To Open Post Office Monthly Income Scheme (MIS) Account?
- 4. You Can Transfer Account To Any Other Post Office
- 5. Is There Any Tax Benefit Under The Post Office MIS?
- 6. Rules For Premature Withdrawal:
- 7. Is There Any Facility For Nominee Under Post Office MIS?
- 8. Who Can Open An Account Under The POMIS?
- 9. What Is Post Office Monthly Income Scheme Deposit Rules?
We are giving you information about this post office monthly income scheme in this article below:
What Is Post Office Monthly Income Scheme (MIS)?
The Post Office Monthly Income Scheme is for investors who want to earn interest on a monthly basis by investing a lump sum. This scheme is very useful for retired employees and senior citizens. The maturity period in this account is 5 years. In this, the account holder gets an interest every month on the deposit.
To open this account you will have to deposit a minimum amount of INR 1500 or more than that. At present, the scheme is getting interest at a rate of 7.3 percent. This annual interest is distributed over 12 months, which you get on a monthly basis.
Under the post office monthly income scheme, any citizen of the country can open an account. You can also open an account with your child’s name. If the child is less than 10 years old, an account can be opened in his name on behalf of his parents or legal guardian. At the same time, when the child is 10 years old, he can also get the right to operate the account himself.
A Brief Account On POMIS:
You can open an account under the post office monthly income scheme either in a single or joint manner, both have different deposit limits. As the maximum investment in a single is 4.5 lakhs, you can deposit up to 9 lakh rupees in a joint account.
One can earn the interest every month by lump sum money deposited in the “Post Office Monthly Income Scheme Account”. This scheme is beneficial for those who do not have a regular income but have lump sum money. Through this scheme, they can arrange a regular income. The good thing is that in this scheme your basic amount remains as it is.
This investment is completely risk-free due to being a government scheme. At the same time, it also gets good interest. In this article, we have attended all the important information related to the Post Office Monthly Income Scheme Account.
This scheme is beneficial for those who do not have a regular income but have lump sum money. Through this scheme, they can arrange a regular income.
How To Open Post Office Monthly Income Scheme (MIS) Account?
You can go to any post office at your convenience and fill the post office monthly income scheme account form and submit it. With the Account Opening Form, you have to submit the following documents.
- Photocopy of one of the documents authenticating your identity such as Aadhaar card, PAN card, Voter ID, driving license, ration card, etc.
- Two recent passport size photographs of the account opener/s
- Photocopy of One of the Documents Certifying Your Residence Address such as Aadhaar card, PAN card, Voter ID, driving license, ration card, etc.
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You Can Transfer Account To Any Other Post Office
You can also transfer your Post Office Monthly Income Scheme Account to any other post office if you change your residence, job place or for any other important reason.
For this, you have to submit an application in the Post Office where you have an account
The application also needs to mention the reason (In Favor) for the need for account transfer.
Is There Any Tax Benefit Under The Post Office MIS?
The downside of the Post Office Monthly Income Scheme Account is that there is no Exemption or deduction on the amount deposited in it and the interest you get from it. Although the post office does not deduct any kind of TDS on the income you earn.
The annual total of the interest you receive as a monthly installment is included in your taxable income. That is, according to the tax slab of that year it will be included in the tax calculation.
Rules For Premature Withdrawal:
You can withdraw the amount deposited in the Post Office Monthly Income Scheme (MIS) Account even before the Maturity Period (5 years) if there is any mandatory requirement. You get this facility only after completion of at least 1 year of account.
On withdrawing the money before maturity, you get it back by deducting a small amount from the deposit amount. The rules of this deduction are as follows:
- You can’t withdraw the amount deposited in it for 1 year from the date of opening the post office monthly income scheme account.
- If you have an old account from 1 year to 3 years, you get the remaining amount back by deducting 2% from the amount deposited in it.
- If you have an account that is more than 3 years old, you get the rest of the amount by deducting 1% from the amount deposited in it.
Is There Any Facility For Nominee Under Post Office MIS?
You can also file a nominee for your Post Office Monthly Income Scheme Account. A nominee is a person who gets a deposit after the death of the account holder.
The facility of registering the nominee name is available only when you open the account. The nominee has a detail filling column in the account opening form.
For some reason, if you are not able to register the name of Nominee while opening the account, then the name of Nominee can be entered later.
You can also change the name of the person whom you have created a nominee at the time of opening the account or later.
Who Can Open An Account Under The POMIS?
Under the Post Office Monthly Income Scheme (POMIS), investors can open an account on their own name single-handedly and/or jointly. One can open an account under this scheme in the name of any adult, Minor or Child. In case of the child below 10-year-old, you can open an account in his name on behalf of his parents (Natural Guardian) or Legal Guardian. The responsibility of the operation of the account will also remain with the Guardian.
In this scheme, it has prohibited to open an account in the name of a group, institution, committee or family.
What Is Post Office Monthly Income Scheme Deposit Rules?
One can open an account of Post Office Monthly Income Scheme by depositing at least INR 1500. A maximum of INR 4.5 lakh can be deposited on a single account. And a maximum of 9 lakh rupees can be deposited on having a joint account.
An account, check or cash can be opened by depositing money by any means. In the event of depositing the check, the date of opening the account will be considered as the date on which the money of the check will be deposited in the government account. The date you deposited the check will not be considered a date.