Under the Post Office MIS, investors can invest up to Rs 4.5 lakh individually and up to Rs 9 lakh jointly. Once you start investing, you will receive payment from the investment starting from the first month, which will be credited to you at the end of every month. It is important that the contribution of two is equal in the joint account . Currently the interest rate is 6.6 percent. The MIS scheme pays interest every month and is suitable for those who want regular or supplementary income from their investments.
Eligibility and Tax Rules
Talking about the eligibility, the Post Office MIS Account can be opened by a minor below the age of 10 years. If the child is younger than this, the parent can open an account in your name. The interest amount starts 30 days after the account is opened. In this scheme MIS interest is paid on monthly basis. If the account holder does not avail the monthly interest, then he will not avail the additional interest. Interest can be paid in auto mode in the same Post Office Savings Account. The interest income is fully taxable for the account holder.
>> Low Risk: Safe Investment that provides guaranteed returns after the maturity period. The risk-level in this scheme MIS is around 0%.
>> Investors can start by investing Rs 1,000 in this monthly income scheme, and the amount gradually increases with time.
>> 5-Year Lock-in: Comes with a mandatory lock-in period of 5 years! Investors can also invest in the same scheme after the maturity period if they want.
>> Investments under this Monthly Income Scheme (POMIS) are not covered under section 80C, and income is subject to taxation, but there is no TDS.
>> The maximum investment limit is INR 4.5 lakhs in a single account and INR 9 lakhs in a joint account.
>> A person can invest a maximum of Rs 4.5 lakh in MIS including his share in joint accounts.
>> For computing an individual’s share in a joint account, each joint holder has an equal share in each joint account.
Interest income per month
For example, A and B collectively in the scheme Post Office Monthly Income Scheme maximum Rs 4.5-4.5 lakh! Let’s add! Thus the total amount of the deposit was Rs 9 lakh! Annual interest at the rate of 6.6 percent (900000 * 1 * 6.6 / 100 = 59400) Rs. Thus the monthly interest income is Rs. Will be 450! Of these, 2475-2475 A and B will be the same!