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Post Office Saving Schemes 2024: Most people want to invest their money in a place that is risk-free and where they get good returns. In this regard, people prefer Post Office Saving Schemes because the amount invested in Post Office is safe in terms of investment. If you are also planning to invest in any scheme of Post Office, then you can choose the option of Post Office Monthly Income Scheme.
This is a small savings scheme of the post office. After investing in it, your monthly income starts. Here we are going to tell you how and how much you can invest in this scheme of the post office to get monthly income. How much interest will you get on this and for how long will you be able to avail the benefit of monthly income under this scheme. So let's know…
What is Post Office Monthly Income Scheme?
Monthly Income Scheme (MIS) is a type of pension scheme. By depositing a lump sum amount in this scheme, you will get guaranteed income every month for the next 5 years. There is an option to invest in MIS through both single and joint accounts. A maximum of Rs 9 lakh can be invested through a single account and a maximum of Rs 15 lakh through a joint account.
In simple words, Post Office Monthly Income Scheme (POMIS) is a kind of term deposit account on which you get interest every month. You can deposit a fixed amount in it and then get a fixed income every month through interest. Its investment period is 5 years.
You can earn from Rs 5,550 to Rs 9,250 per month
Let us tell you that at present this scheme is getting 7.4% annual interest. However, its interest rates may change over time. In this way, if you deposit a lump sum of Rs 9 lakh in Monthly Income Scheme (MIS), then you will get a monthly interest of Rs 5,550 every month for 5 years. At the same time, if you invest Rs 15 lakh in MIS, your monthly income will be Rs 9,250 every month.
There will be no tax on this scheme
There is no wealth tax on this scheme. TDS (tax deduction at source) or tax exemption is also not applicable on this scheme, nor does it come under Section 80C of the Income Tax Act. The interest received on your deposit i.e. investment in this scheme is taxable. When you file income tax returns, you have to show the income earned from this in the 'Income from other sources' category.
You will have to pay tax on the interest received from this scheme as per the income tax slab applicable to your total income. So if you have invested in this scheme and are earning interest on it every month, then do not forget to show it in your income tax return.
A penalty will be levied for withdrawing money before the maturity period
After opening an account under this scheme, you cannot withdraw money for one year. However, if you withdraw it before its maturity period i.e. between 3 to 5 years, then 1 percent of the principal amount will be deducted and returned. However, if you withdraw money after the maturity period is over, then you will get all the benefits of the scheme.
Monthly Income Scheme (MIS) is a good option for those who want regular income and do not want to take risk. It can also be the best plan for retirement planning.