MONTHLY INCOME SCHEME

1-What is the post office's Monthly Income Scheme?

The Post Office Monthly Income Scheme (POMIS) is a government-run program that allows investors to earn a set amount each month.In this scheme, an investor invests a certain amount with the post office for a 5 year period. Interest is added into the MIS holder account at the applicable rate and paid out to the depositors on a monthly basis.

2-Duration of MIS?

The MIS maturity period is 5 years (60 months) from the account opening date.

3-Document required for opening an MIS account?

Identity Proof: government issued ID such as a passport, voter ID card, driving license, or aadhaar, etc.

Proof of address: government-issued ID or recent utility bills.

Two passport-sized pictures

4-MIS account opening maximum and minimum limit?

The minimum deposit limit for the amount in the Post Office MIS plan is Rs. 1000 (and thereafter in multiples of Rs. 1,000).

The maximum deposit limit for the Post Office MIS plan is as below:

Account Type Maximum Limit Single Account 4.5 lakh rupees. Joint Account 9 lakh rupees. Minor Account 3 lakh rupees
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5-MIS account locking or premature closure rules?

Premature withdrawal/closure is allowed subject to the below terms and conditions.

• Premature withdrawal or closure is not allowed within 1 year of account opening.

• A 2% penalty on the deposit amount is applicable if the premature withdrawal is within 1 to 3 years of the account opening.

• A 1% penalty on the deposit amount is applicable if the premature withdrawal is within 3 to 5 years of the account opening.

6-How to withdraw MIS account interest?

MIS interest can be withdrawn on a monthly basis. There are 2 ways to withdraw MIS interest.Interest can be withdrawn directly from MIS account or MIS interest can be transferred into saving account.

7-Interest can be withdrawn by filling out a withdrawal slip 

Yes, interest can be withdrawn by withdrawal slip & second method is MIS interests can be transferred to the post office savings account through the ECS system.

8-Can NRI open a mis account ?

The MIS Account cannot be opened by a non-resident Indian or a HUF.

9-MIS account interest calculation

MIS interest is calculated monthly at a certain rate of interest.

10-Can we transfer MIS accounts to another post office?

Yes, Your account can be transferred from one post office to another for free.

11-What if we misplace our account passbook?

And if we misplace a passbook, we need to lodge a police complaint at the nearest police station to apply for a duplicate passbook. We need to pay 59 Rs for a duplicate passbook. You need to submit a filled SB-41 form to the post office. Within 2 weeks, you should get a duplicate passbook.

12-Can we open a MIS account in the name of a boy or girl?

Yes, a MIS account can be opened in the name of a boy or girl through a parent or guardian. If a child is over 10 years old, then he/she can have a miscellaneous account in their own name.

13-Can we pay a deposit amount in cash or by cheque?

We can pay a deposit amount of Rs.20,000 in cash and for anything more than that, we need to pay with a cheque.

14-Is there any tax benefit for MIS -accounts?

No, post office MIS does not attract any tax benefits under Section 80C of the Income Tax Act, 1961, but the amount deposited in POMIS is exempt from Wealth Tax. 

15-Can we extend MIS accounts after completing 5 years?

We can not extend MIS accounts, but we have to reinvest this amount.

16-Is the TDS applicable and is MIS interest taxable income?

No, there is no TDS (Tax Deduction at Source) applicable. However, the interest on investments is taxable.

17-Can we open multiple MIS accounts in the same office or another post office?

Yes, multiple accounts can be opened but the amount should not exceed the investment limit of 9 Lakh for joint, 450000 for a single account and 3 Lakh for a minor account.

18-What if the joint account holder dies?

In the case of the death of the joint holder, the account is treated as a single account in the name of the surviving account holder. The account is continued as per the surviving depositor’s maximum limit of investment, the If the post office notices an excess deposit in such a situation, then the surviving depositor has to withdraw the excess amount immediately. If the interest is already paid as per MIS rates, then any excess interest will be adjusted in future monthly interest payouts.

19-Do we need a pan card to open a MIS account?

Yes, a pan card is mandatory to open a MIS account at the post office.

20-Is there a nomination facility available for the MIS account?

Yes, Account holders can nominate at the time of account opening or after opening an account.

21-What happens when depositors deposit more than the prescribed limit?

In this case, the post office will ask depositors to withdraw excess cash or deposit the amount and earn only saving bank account interest for the invested period.

22. What is the current rate of interest on post office MIS interest?

Ans: MIS interest remains the same as it was during the time of deposit for a period of 5 years. However, the MIS rate is changed every quarter.Current rate of interest is 6.6%

23.-What if the MIS investment is not withdrawn after 5 years of maturity?

If an MIS investor does not withdraw the invested amount even after completing 5 years, the invested amount remains in the account and earns only saving account interest for a further 2 years. After that, no interest is given on the investment. His money remains in the office.

24. What if MIS interest is not withdrawn?

If MIS earned interest is not claimed, then such earned interest does not attract any further interest accumulation like RD investment, and it will remain in the account idle. Interest can be withdrawn at any time during the 5 year period.

25. Is there any bonus benefit after the maturity of the account?

No, there is no such bonus given after the maturity period.

26-What happens if a single MIS account holder dies?

The nominee or legal heir is not allowed to continue the MIS account further. The account must be closed by the nominee or legal heir of the account holder. The invested MIS amount is returned to the nominee or legal heir.

27. What happens if a depositor dies in the case of a joint account?

If an MIS account holder dies, such an account is treated as a single account in the name of the surviving account holder, but the surviving account holder's investment limit should not exceed

28-MIS interest can be automatically invested into a Post Office RD account?

No, MIS interest can not be transferred directly into an RD account. MIS interest can be transferred into a saving account and from that saving account, an RD installment can be paid.