What is Post Office Monthly Income Scheme (POMIS)?

Table of Contents☰

Why in News:

The deposit limit for the Post Office Monthly Scheme (POMIS) has been revised for a single account to Rs.4.5 lakh to Rs. 9 lakh and Rs. 15 lakh from Rs. 9 lakh for joint account holders.

About Post Office Monthly Income Scheme (POMIS):

It is a Government of India backed small savings scheme that allows the investor to invest a specific amount every month.
Eligibility:
A resident of India. NRIs are not eligible to invest in this scheme
Individual above the age of 10 years.
Number of holders: At least 1 and at most 3 individuals can hold post office MIS.
Maturity Period:5 years
Maximum limit:
If you open an MIS scheme individually, then the maximum amount you can invest is Rs.4.5 lakh. (Increased to Rs.9 lakh in Budget 2023-24)
If the account is opened jointly, the investment limit will be Rs.9 lakh. (Increased to Rs.15 lakh in Budget 2023-24)
Lock-in period: On opening a Post Office Monthly Income Scheme, there will be a lock-in period of 5 years during which you cannot withdraw any money.
Transferable: POMIS account is transferable from one post office to another.
Premature withdrawal: Premature withdrawal is allowed after one year of opening the account with a penalty.
Taxability: Any income from this scheme does not come under TDS or tax deduction.

Q1) Who can be a nominee under Post Office Monthly Income Scheme (POMIS)?

The investor can nominate a beneficiary (a family member) so that they can claim the benefits and corpus if the investor passes away during the account’s term.

Source: Post Office Monthly Income Scheme (POMIS) Calculation 2023: What Rs 9 lakh or Rs 15 lakh deposit will give