Finance Minister recently announced the increase of deposit limit for the Post Office Monthly Income Scheme (POMIS).
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.
- 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.