Post Office Monthly Income Scheme (POMIS) is among the hottest risk-free put up workplace saving schemes the place an investor can make investments with a minimal deposit of ₹1,000. Middle and low revenue group traders can have a look at this Post Office MIS scheme as tax-saving possibility as nicely as a result of one can declare revenue tax exemption underneath Section 80C of the Income Tax Act on one’s funding on this scheme. It has a lock-in interval of 5 years and Post Office Monthly Income Scheme rate of interest will stay unchanged all through the funding interval. Means, return on Post Office Monthly Income Scheme is assured and an investor would get return on one’s cash as per the Post Office Monthly Income Scheme rate of interest on the time of funding.
Here we checklist out essential particulars that an investor should know whereas investing in Post Office Monthly Income Scheme:
1] Interest charge: As this put up workplace small saving scheme is a lock-in product, its rate of interest will stay mounted as per the speed of return on the time of funding. For instance, Post Office Monthly Income Scheme rate of interest is presently at 6.60 per cent each year. So, if an investor invests on this put up workplace scheme, it’s going to get 6.60 per cent annual return on one’s cash on the time of maturity.
Interest shall be payable on completion of a month from the date of opening and so forth until maturity and an investor has to assert for it. As per the India Post web site, “If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.” The Post Office Monthly Income Scheme curiosity is taxable into the arms of depositor.
2] Deposits: As per the India Post web site, Post Office MIS account could be opened with minimal of ₹1000 and in a number of of ₹100. A most of ₹4.50 lakh could be deposited in a single account and 9 lakh in joint account. In a joint account, all of the joint holders shall have equal share in funding.
3] Lock-in interval: Like any tax-saving fiat cash, this put up workplace saving scheme additionally has 5 12 months lock-in interval. One can declare revenue tax exemption on one’s funding on this scheme underneath Section 80C of the Income Tax Act, 1961.
4] Guaranteed return scheme: this put up workplace scheme is a risk-free assured return scheme. If an investor invests on this Post Office Monthly Income Scheme at present, it’s going to get 6.60 per cent return on one’s funding on the time of maturity.
5] Maturity: Account could be closed on expiry of 5 years from the date of opening on submission of utility kind with cross ebook at involved Post Office. In case the account holder dies earlier than the maturity, the account could also be closed and quantity will probably be refunded to nominee/authorized heirs. Interest will probably be paid as much as the previous month, through which refund is made.
6] Pre-mature closure of account: No deposit shall be withdrawn earlier than the expiry of 1 12 months from the date of deposit. If account is closed after 1 12 months and earlier than 3 12 months from the date of account opening, a deduction equal to 2 per cent from the principal will probably be deducted and remaining quantity will probably be paid. If account closed after 3 12 months and earlier than 5 12 months from the date of account opening, a deduction equal to 1 per cent from the principal will probably be deducted and remaining quantity will probably be paid.
7] Eligibility: Only an Indian resident can open a Post Office Monthly Income Scheme account. By submitting the wanted documentation to the closest Post Office, any grownup can open this Post Office MIS account. A minor above 10 years in age can open this account in his personal title.
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