Post Office Monthly Income Scheme

by Manshu on December 13, 2010

in Investments

Post Office Letter Boxes, EC1A 1AA .London Chief Office 1994photo © 2008 Felix O | more info (via: Wylio)

Couple of weeks ago, I wrote about Monthly Income Plans or MIPs, and this week I’m going to write about a similar monthly income scheme from the Indian post office called the Post Office Monthly Income scheme.

This is a fixed income scheme which provides you a guaranteed return on your investment, and is meant for people who are looking for a monthly source of income without taking any risk at all.

Where the mutual fund MIP invests a part of its assets in equity, and even gold in some cases – and may sometimes even get you a higher than 10% return (with commensurate risk of course) this scheme has a fixed rate of return and is meant for people looking for an ultra safe investment.

Here are some features of this scheme.

Post Office MIS Interest Rate

This is a scheme from the Indian postal service that earns you an interest of 8% per annum, and generates a monthly income for you.

So if you invest Rs. 100,000 in it – your annual interest at 8% will be Rs. 8,000, and you will get Rs. 666.67 monthly.

Post Office MIS Tenure

The maturity period of the scheme is 6 years, at the end of which you will get your money back. You cannot redeem your money within a year, but you can redeem it after that upon paying a penalty.

Here is how that works.

Less than 1 year: MIS can’t be encashed.

1 – 3 years: You are penalized 2% of deposit.

After 3 years: You are penalized 1% of your deposit.

5% Bonus

If you retain your Post Office MIS till maturity (6 years) – at the end of the time period you will be given a 5% bonus on your deposit.

Minimum and Maximum Investment

The minimum sum you can invest is Rs. 1,500, and you can go up to Rs. 450,000 in case of a single account, and Rs. 900,000 in case of a joint account.

Tax on Post Office MIS

There is no TDS on the Post Office MIS, but the interest income is taxable in your hands. The interest income from post office MIS used to be tax free under section 80L, but that section has been withdrawn from April 1 2005.

Interest can be automatically credited to your bank

At the time of opening the scheme you can give in your bank account details, and interest will be automatically credited to your bank every month.

Transfer from one post office to another

There is a provision that allows you to transfer your money from one post office to another. So, if you opened your account in one post office, and moved to another place you can fill up a transfer form with them, and move your scheme to another post office.

Conclusion

This scheme is meant for people who are looking for an ultra safe investment and a regular source of monthly income on top of it. A lot of retired people will fall under this category, and if you fall under that category then you need to evaluate other options like the Senior Citizens Savings Scheme before you invest in this scheme. I”ll cover that scheme in the days to come, and if you have any questions about this particular scheme or any other observations please leave a comment.

{ 241 comments… read them below or add one }

Indian Thoughts December 13, 2010 at 2:10 AM

Generally retired people make use of it.. atleast everyone retired from govt job in my family does use it.

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Manshu December 13, 2010 at 7:33 AM

Don’t they have the option of investing in this Senior Citizen’s Savings Scheme which has a higher rate? I read about it somewhere but can’t recall on the top of my head if that gives out a higher rate and by how much.

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Indian Thoughts December 13, 2010 at 10:19 AM

i think they have senior citizen savings scheme + MIP

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chocolate December 13, 2010 at 3:11 AM

Hi Friend,
This scheme is very useful for those who have money to invest and they want to play a safe game, POMIS will give regular return on regular intervals and we can get the money back after the decide period.

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Nataraj December 13, 2010 at 4:18 AM

I would like you to comment on Postal MIS with interest going to monthly Postal Recurring Deposit scheme…instead of cumulative FD in a bank…..

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Manshu December 13, 2010 at 7:32 AM

Let me try my hands on that, but I am off for vacation for most of the remaining month, so it will take a long time.

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Nataraj December 15, 2010 at 2:19 AM

I now realise that Interest from MIS, when goes to Postal RD, the yield for 5 year term is 10.95%…best in class….
http://www.indiapost.gov.in/netscape/6yearsMIS.html

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Manshu December 17, 2010 at 10:56 PM

Great – glad you found that link, which even Dhruva shared. Thanks for sharing.

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Dhruva December 13, 2010 at 11:07 AM

I research a lot on this long back. Take a look at this link on their official website-
http://www.indiapost.gov.in/netscape/6yearsMIS.html

The thing that turned me on was the option to reinvest the monthly interest as a recurring deposit – which will make it 10.5% assured interest. (which was kind of highest assured interest I could find across board).

But then the thing that turned me off was – no computerization/online modes etc – so we need to goto post office to setup and check. (harder for me as I am sitting in USA) – still it is one of the options I am exploring to do when I return to India.


Below excerpts is taken from their website-

Deposit in Monthly Income Scheme and invest interest in Recurring Deposit to get 10.5% (approx) interest.

Above scheme operates automatically, if you open a saving bank account and give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account.

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Venkat Sundaram December 14, 2010 at 1:57 AM

Sure, This is very safe & high return (as of now) investment. This scheme can work together with MIS+ interest going directly into RD (RD is for 5 yrs only) incase monthly income is not necessary. For ease of monthly interst calculations investments in mulltiples of Rs. 1,500 is idle. as Rs. 1,500/- earns interest of Rs. 10 a month.

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Atul December 14, 2010 at 10:02 PM

DOn’t u think investment in NSC gives the same return + we don’t have to depend on the agent(with the number of frauds happening these days). How can we ensure that the money received as monthly interest is depostited in the RD account every month by the agent.

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Manshu December 17, 2010 at 10:58 PM

NSC doesn’t have a monthly return option so that makes a difference for people specifically interested in the monthly income. I don’t think they yield ~10% do they? I remember it being in the 8% range.

Plus I’d do this myself if I had to get into this, it’s not necessary to go through an agent, and you can always monitor the account to see nothing is amiss.

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T K Vani December 20, 2010 at 3:00 AM

Hi,
Just to add, Now you have the option of extending the postal RD upto a period of 10 years
The six Year maturity value (to Correspond with the MIS maturity date ) for RS10 RD is 910.08.

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Manshu December 20, 2010 at 11:45 PM

I’m not quite sure I understood what this means. The RD will last for 10 years, or the MIS can be extended for another 6 years, could you please elaborate?

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Kunal January 10, 2011 at 4:45 AM

Hi,

Firstly, my applauds for such a useful site…
I would also like to get some clarity on the how the RD works. It would be great if explained by an example.

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Manshu January 10, 2011 at 5:10 AM

Thanks Kunal – Recurring Deposits involves depositing a sum monthly, and then having it compound, and grow for a fixed period. You can open a RD with a bank or a post office. I’ll see if I can do a post on this topic.

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prakash sharma December 26, 2010 at 9:58 AM

as per rbi site some specific branchesh of nationalize banks are entitled for mis scheme like uco bank branch office ghumarwin
do u knaow about other branches and what is procedure?
as bank employees themselves don,t know about that

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Manshu December 28, 2010 at 8:27 AM

Sorry – but I’m not aware of any specific bank MIS schemes either.

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Rahul January 14, 2011 at 3:50 AM

Hello EveryBody! Really a good place for some nice basic knowledge & advanced too.

Regarding MIS + RD together:

As per the link provided by Dear Nataraj, if we invest say Rs. 15,000 in MIS & deposit the monthly interest (Rs. 100) in RD A/c, the proceed we receive after 6 years is –

From RD Maturity – Rs. 9101/-
From MIS Principal – Rs. 15000/-
From 5% MIS Bonus – Rs. 750/-
TOTAL – Rs. 24851/-

If we open NSC A/c with the same amount i.e. Rs. 15000/- as Principal, we get Rs. 24015/- as maturity value at the end of 6 year.

So Net Gain in 6 Years is Rs. 836/- [for an initial investment of Rs. 15000/-]

Plus of MIS + RD : Extra Interest of Rs. 836/-

Minus of MIS + RD : No tax benefit u/s 80C + No treatment of accrued interest in the subsequent years for the purposes of 80C benefit.

Thanks.

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Manshu January 14, 2011 at 8:59 AM

Hi Rahul – thanks for the excellent comparison you have done!

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Shankar Narayanan January 26, 2011 at 12:53 AM

Many Thanks to the writer and the followers for sharing very vital information about MIS.

The question I have is, for 1500 Rs. investment, 8% of interest gives 120 per year. So, monthly 10 Rs.

But, in a website, it has been mentioned 8% interest and income for 1500 Rs. is 7 Rs per month. Can somebody add more light?

This is the URL:
http://www.tamilnadupost.nic.in/fsvc/banking_mis.htm

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Aravinda K V February 17, 2011 at 8:59 PM

Can I add top-up to my existing MIS Scheme.
Please give the procedure for it. Can I do it online?

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Manshu February 18, 2011 at 9:30 AM

Online for the post office? Our post office is not that high tech yet 🙂

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mini punjrath February 26, 2011 at 12:11 AM

i want to know if the form for transfer of POST OFFICE MIS can be downloaded from internet, as i am out of town and not able to get this form
thnx
minipunjrath

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Manshu February 26, 2011 at 2:32 PM

Mini – I’m not aware of any way of downloading the form from their website, or submit it remotely.

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BUY eGOLD & eSILVER February 27, 2011 at 8:50 AM

As far I am aware, you can have deposit of Rs: 4.5 Lakhs in Single name and 9 Lakhs in joint names.

The rate of interest is 8% with 5% bonus on Maturity.

You have the option of DIRECT CREDIT to your ANY SAVING account with any bank.

Interest is exempted u/s 80C under the overall limit.

It is a good and Safe investments and highly recommend everyone for utilising this investment limit to the fullest, if you are not requiring the fun in the near future.

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Vilas Vasant Patki March 9, 2011 at 4:20 AM

I want to know whether the maturity amount (Principal Amount +Bonus) of Post Office MIS is liable for Taxation at the time of maturity.Secondly,whether the monthly interest earned on the Deposits in MIS are fully taxable or is there any rebate/concession available under any section of Income Tax Rules
Vilas Vasant Patki

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Manshu March 10, 2011 at 5:38 PM

The interest earned is taxable, and to the best of my knowledge there is no way to avoid that. I’m however not 100% if there is absolutely no way to avoid that because there might be a way to invest it somewhere that I’m not aware of. Ordinarily it is taxable though.

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Rupesh S Mahadik April 23, 2012 at 9:02 AM

There will be no tax on the principal amount invested, but you will have to pay tax on the bonus amount receivable on maturity, talking about the Monthly interest earned on the MIS it is fully taxable and advisable to show this amount while you file your yearly IT returns.

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Debanjan Mukherjee May 29, 2011 at 1:38 PM

Hi Chaps,

Thanks for the posts. However, I discovered some problems with the values shown by the calculators on the PO website which I am explaining below.
For Rs. 60,000 in MIS the calculator displays the following values –
Monthly Interest = 400
If Monthly Interest is deposited in RD account –
Maturity Value = 36403
5% bonus of MIS = 3000
Total gain = 39403
Per year = 6567
Percentage interest = 10.945

The maturity value for the RD assumes that the RD runs for 6 years whereas in reality it only runs for 5 years, in which case the interest is Rs. 29156. The RD effectively matures an year earlier than the MIS. So I am not sure the percenatge interest being shown actually is accurate.

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T K VANI May 31, 2011 at 1:34 AM

Hi,
Now you have the option of extending the RD up to 10 years though your MIS account will not earn interest if it stays beyond the stipulated 6 years.
however with the RD you have the option of continuing with Deposit, or without Deposit, upto a period of 10 years. Now the post office allows auto debit from MIS account to RD.you also have the option of paying for the RD by annual mode incase you do not want to go to the post office everymonth.You can give automatic credit to your SB and draw and pay everyyear annually for which you will get a reabate of 400 rupees for every thousand for annual payment.

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Manshu June 6, 2011 at 4:05 PM

Thanks a lot for answering that!

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Debanjan June 7, 2011 at 5:34 AM

Does the PO provide a accrued interest certificate for filling IT Returns on RDs?

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CHIRAG July 7, 2011 at 8:55 PM

i had invest rs. 600000=00 in mis (post office scheme) date -26-4-2006. i have entitiled for bonus. if yes how much .

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Manshu July 9, 2011 at 11:27 PM

At the redemption, everyone gets the bonus, so yes, you will get a 5% bonus when it’s redeemed next year.

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Ankit July 29, 2011 at 10:36 AM

Hi

My quesion is to you, on redemption of Post office MIS scheme How I treat the bonus part on redemption should I treat long term capital gain and take the benefit of indexation. Please advice on this issue.

Regards
Ankit

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Manshu July 29, 2011 at 7:47 PM

Sounds like this is capital gains Ankit, but I’m not sure, best to check with CA.

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Ankit July 29, 2011 at 10:48 AM

Tax Treatment for Bonus under Post Office Monthly Income Scheme

Under above scheme, bonus equal to 10% of the Principal amount of
deposit is made by post office in case withdrawl of deposit is made
after expiry of the prescribed period of deposit i.e. 6 years. What
tax treatment is to be made for above receipt?
(1) Whether the same is to be treated as receipt of interest and
is to be offered for tax
(2) Whether the same is to considered as capital gain in spite
of the fact that the amount invested is an investment and not
capital assets.
(3) Not liable to tax at all.

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sanjiv arora August 23, 2011 at 8:15 PM

we have mis scheme in post office for rs450000/-in two names,either or survivor,ist person is expired&survivor wnats to withdraw itbefre maturity ie after 9 months. idon!t want to be penalized. kindly suggest .thanks

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Manshu August 24, 2011 at 5:12 AM

I’m sorry for your loss – unfortunately, I don’t know enough to give you a definite answer, and will advise you to go to the post office and find that out.

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I.N.Mukherjee August 29, 2011 at 12:26 AM

Pl. intimate whether the bonus received after maturity from Post Office MIS is taxable?

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Manshu August 29, 2011 at 5:09 AM

Yes, to the best of my knowledge it is taxable.

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I.N.Mukherjee August 30, 2011 at 12:24 AM

Dear Mr.Manshu,
Many thanks.One more query.If father has invested the principal amount in the PO MIS A/C & it is held jointly with his son ,whether son has to pay gift tax on the principal amount also after its maturity in case his father expires before the maturity?

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Manshu August 30, 2011 at 4:46 AM

I’m not as up to date with tax info as I’d like to be and I’m not quite sure what will happen in this case.

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T K VANI September 1, 2011 at 9:01 PM

well there will be no gift tax in this case as father’s money passing on to son will be considered as gift received from a relative which is exempt (any amount)(father son any lineal ascendant or desendant)

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Jyostnarani Behera September 22, 2011 at 12:31 PM

if i invest 1lac in POMIS then after maturity how much extra amount i will get.for example every month i will take the monthly interest .excluding that amount how much i will get after 6 years.

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Rupesh S Mahadik April 22, 2012 at 9:49 PM

Excluding the Interest amount you received every month, you will be receiving your principal invested amount back but with addition of a 5% Bonus i.e total 105000/- in your case.

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Shiv Kukreja April 23, 2012 at 12:52 AM

Hi Rupesh… Govt. has stopped paying any Bonus on Post Office MIS since December 1st, 2011.

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Rupesh S Mahadik April 23, 2012 at 8:04 AM

Even I have heard of the same but what about the MIS accounts opened prior to 1 DEC 2011, I don’t think this new rule is applicable for old MIS, are they going to pay us the interest as per new interest rates, there are such things still to confirm, I searched & am searching for such information even PO agents are still in a confusion, even though once again I will be asking my PO agent about this & forward the related info as soon as the same reaches me, till then it would be really fine if you or anyone on this forum could confirm the same if possible.

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Rupesh S Mahadik April 28, 2012 at 2:29 PM

Once again I reconfirmed with my PO Agent and she also confirmed that the discontinuation of Bonus will not affect old PO MIS i.e the bonus of 5% will be applicable on maturity only PO MIS opened post DEC 2012 will not get bonus.

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Manshu April 28, 2012 at 6:15 PM

Still not certain that’s true because there were news reports in Dec 2011 about the bonus being scrapped. Here is a link for reference. http://www.thehindu.com/news/national/article2618995.ece

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Rupesh S Mahadik April 29, 2012 at 8:58 AM

Thanks Manshu for your Reply & the Link for reference. I went thru the same & found a comment of Shri. S.KRISHNAN even he had raised his concern over the scrapping of bonus but in an immediate reply to his post itself he had cleared that the Bonus on Maturity remains unaltered for PO MIS opened prior to Dec 2011. Find below the excerpts from his post for reference.

[ “Further to my post on 29.11.11 i wish to clarify that our fear was unfounded and based on misleading reports in newspaper. As per Notification i have read to day no.113 dt 24.11.11 the maturity bonus is not applicable ONLY ON new MIS accounts opened on or after 1.12.11.Therefore the interest of existing ongoing account holders stands unaltered. One may visit post office web site and see the notitification No.113 which is very clear.

from: S.KRISHNAN
Posted on: Nov 30, 2011 at 13:22 IST “]

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Shiv Kukreja April 28, 2012 at 9:31 PM

Not “post DEC 2012” it should be “Post December 2011”.

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Rupesh S Mahadik April 29, 2012 at 9:01 AM

Thanks for pointing out the mistake.

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Mujeeb.T.A September 23, 2011 at 3:22 PM

DO any body knows this?
After maturing RD or MIS account do post office return back the money through the agent if we have given signed documents or is it compulsory the person should present for withdrawel?

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Mujeeb.T.A September 23, 2011 at 8:30 PM

hhh

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BIDYUT November 23, 2011 at 2:13 PM

l lik everyday information

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parmod kashyap November 27, 2011 at 9:30 PM

I have suficiant amount iin co operative bank and i want my money deposit in post office as mis . Tell me the proceedure.

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Manshu November 27, 2011 at 9:40 PM

You will have to go to a post office and figure it out – they will explain it to you.

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Jit November 29, 2011 at 11:11 AM

Govt increases the interest rate from 8% to 8.2% but scraps the 5% bonus on maturity. Also it states that rate notification will be from Dec-1 and the MIS of old schemes maturing after Dec-1 won’t get the 5% or 10% maturity bonus? Is this true? If yes then we should take forward it; how can govt not increasing the interest rate of our savings from the date of invested even not giving a single penny of increased interest rate rather they are snatching the maturity bonus (5% or 10% of old schemes) from us if the maturity date falls after 1-Dec.

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aparna December 2, 2011 at 5:36 PM

i want to know what can be the maximum amount in Monthly Income of post office to avoide Income tax by senoir citizen of 70 year.

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Manshu December 3, 2011 at 1:50 AM

That question doesn’t make any sense to me. What are you trying to do? Reduce taxable income? You can invest up to Rs. 1 lakh in some investments fixed deposits and then another 20K in some more bonds. That’s the way to reduce taxable income.

You can’t just avoid paying tax by investing in a post office scheme.

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sanjay wali December 21, 2011 at 4:57 PM

in case of MIS if the account holders are both dead the monthly installment of MIS will change or
remain same , in case of nomination.

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Manshu December 21, 2011 at 8:52 PM

Don’t know about that Sanjay – better check with the post office directly.

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durga prasad March 6, 2012 at 6:03 PM

dear sir,

can i open one or two efferent mis account in post
al india

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Saikat Sarkar March 16, 2012 at 3:13 PM

in a mis of either or survivor account who is the owner of that mis….example,,

(1) mrs, x
(2)mr. y
(3)mrs. z

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Manshu March 19, 2012 at 4:17 AM

What do you mean by owner? What exactly are you trying to find out here?

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bhandary April 7, 2012 at 10:30 AM

Dear Sir

had visited post office today to update my POMIS passbook, there i heard the officer telling another investor that Bonus has been withdrawn wef 13 Feb 2006, can you please clarify regarding Bonus on POMIS Scheme.

regards
bhandary

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Manshu April 9, 2012 at 3:39 AM

Yes, they don’t give the 5% bonus any longer.

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Rupesh S Mahadik April 23, 2012 at 8:50 AM

As per my information prior to FEB 2006 the bonus was 10% & in FEB 2006 the same was discontinued but w.e.f. December 8, 2007 the government has reintroduced the bonus option on maturity in the scheme but a lower rate of 5% but as per the recent information w.e.f 01 DEC 2011 bonus has been discontinued, but I hope it should be applicable to MIS opened post DEC 2011 but I am still unclear of what will happen to the bonus on MIS opened prior to DEC 2011, I am searching for this information, if someone have any confirm source pls reply.

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pankaj April 8, 2012 at 1:29 PM

kya mis 4000000 tak invement kiya ja sakta hai aur us me in cometax bhi dena parega kya ? plz sir guide kare hindi me

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Manshu April 8, 2012 at 8:21 PM

4.5 lakh ki upper limit hai to aap 40 lakh nahi invest kar sakte. Aur income tax to dena hi padega chahe jitna bhi investment ho.

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pankaj April 9, 2012 at 12:57 PM

sir
joint account pe 9 lack mis invest to kiya ja sakta hai agar family member ke naam se 4 join account agar khola jaye to aur sir isme jo monthly retyrn milta hai usme to tds & tax included hota hai

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Ashwin April 13, 2012 at 8:41 PM

Hi Manshu,
First of all i would like to Thank you for taking time to answer all of our questions, i really appreciate it !.
Like others i too have a question, My Father opened a MIS account on my name 3 years ago, now it is time to encash the MIS principal and the interest that was going into the linked SB account.
the problem is i do not have a Bank account in india, i do not want to open a bank account either just to encash the MIS. would they just pay me by cash or other means if i am willing to show up in person at the post office.

With Best Regards
Ashwin

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Manshu April 14, 2012 at 7:03 AM

Thanks for your kind words Ashwin – as far as I know post offices don’t hand out cash like that for the MIS scheme but my knowledge about this is limited so I can’t say with 100% confidence whether you’ll be able to get cash or not.

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ram prasad guiya May 8, 2012 at 4:53 PM

I invested 500,000 in mis and renewal was jan2012,by mistake cannot do it on time but do it on the month of may 2012 now I want know can I get monthly income from jan to april,kindly clear me

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Manshu May 8, 2012 at 6:16 PM

Please check with the post office – they will let you know how to handle the situation a lot better than anyone on this forum.

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Rupesh S Mahadik May 8, 2012 at 8:37 PM

I hope you will not get the MIS interest amount for the period of JAN to APR, but you will recieve the interest amount applicable to Post office Saving Account i.e 4% P.A. For more information you can check out the clause 9A in the below link.

http://www.indiapost.gov.in/POSBActs/POMISRules1987.pdf

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Aman Wadhwa June 21, 2012 at 1:31 AM

My mother had opened MIS account in Post Office for Rs. 2 lacs on 31-05-2006. On maturity date 31-05-2012 , i.e. complete period of 6 years , she received only Rs. 2 lacs. Bonus amount has not been paid to her. Please clarify whether the bonus amount is admissible to her or not.

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Rupesh S Mahadik June 21, 2012 at 9:25 AM

As per my information prior to FEB 2006 the bonus was 10% & in FEB 2006 the same was discontinued but w.e.f. December 8, 2007 the government reintroduced the bonus option on maturity in the scheme but with a lower rate i.e 5%. Your mother opened the MIS in MAY 2006 which is the period during which Bonus was discontinued hence bonus has not been paid. I hope this is the reason your mother was not entitled for a maturity bonus. At that time It was a wise decision & hence many individuals withdrew their MIS & opened new MIS with bonus on maturity.

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Chandramouli July 4, 2012 at 11:41 AM

Sir,
I invested in 6 year MIS on 28.6.2010. Now upon maturity I am told by the post office that during that investments during that period (for few months) do not attract maturity bonus. Is it right?

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Chandramouli July 4, 2012 at 11:43 AM

Dear Sir,

I invite your kind attn to my query posted just now. In it please read the date of investment as 28.6.2006 and not 28.6.2010 as mentioned in it. Sorry for the trouble.
Thank you.

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Rupesh S Mahadik July 4, 2012 at 8:08 PM

Your PO is right in your matter, Maturity Bonus is not applicable for your MIS. For more information you may please refer my reply to the query of Shri. Aman Wadhwa, it is in the same context.

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Chandramouli July 5, 2012 at 10:18 AM

Thank you, Sir.

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Shiv Kukreja July 4, 2012 at 8:11 PM

Yes, that is right – you wont get any maturity bonus of 10%. The maturity bonus remained discontinued for the investments done on or between Febryary 13th, 2006 and December 7th, 2007.

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Chandramouli July 5, 2012 at 10:20 AM

Thank you, Sir for your kind reply.

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KBR DHAWAN July 18, 2012 at 1:08 PM

Post office Monthly Income Scheme used to pay 10% / 5% Bonus on maturity after six years in earlier years. My querry relates to income tax.
I am given to understand that the INTEREST income from the said M. I. Scheme is taxable but it is not clear whether the amount of 10% / 5% BONUS received on Maturity is TAX FREE or TAXABLE in the hands of the Account holder. Please give me a confirmed information as someone has to file tax return.

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KBR DHAWAN July 18, 2012 at 1:51 PM

Please clarify whether the Maturity Bonus received under the Post Office Monthly Income Scheme is taxable or tax free.

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Shiv Kukreja July 19, 2012 at 9:29 AM

It is taxable.

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SUNIL CHOPRA July 19, 2012 at 4:23 PM

Dear Shri Shiv Kukreja,
I refer your comments / reply given in respect of the query raised by Mr. KBR DHAWAN on 18.7.2012. You say that the Bonus amount is Taxable. May I know, under what authority you confirm your statement. Is there any Section confirming your reply? Please clarify.
– SUNIL CHOPRA

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Shiv Kukreja July 19, 2012 at 9:18 PM

Hi Mr. Sunil… It is as per DG Posts letter No. 97-7/89-SB dated November 20, 1990:

http://www.tribuneindia.com/2012/20120108/biz.htm

DG Posts letter No. 97-7/89-SB dt 20.11.1990 states that the CBDT have clarified that the bonus payable under POMIS shall be treated as interest and will be taxable. Therefore, the same cannot be treated as capital gains.

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kjsarma August 2, 2012 at 11:31 PM

i got pomis wef nov 2004 during which time bonus and monthly interest NOT TAXABLE. but govt of india has later said tha interest and bonus are taxable wef 1.4.2005 . It is unfortunae from the point of depositer bcause…any scheme once entered will not be changed till its maturity. govt may apply new conditions for the schemes enterd later to 1.4.2005.in this scheme amount locked for 6 yrs.ie not allowed depositer to with draw.but new condition of tax has been imposed.it is g.ross injustice. my contention is that tax should not be imposed till its maturity.pl CLARIFY

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Shiv Kukreja August 3, 2012 at 9:49 AM

Hi kjsarma… As far as I know, POMIS interest and bonus was always taxable even before April 1, 2005.

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kjsarma August 3, 2012 at 1:35 PM

Thank you for your response. On the same web page the below content is displayed for your information, to state that tax was imposed only from 1.04.2005.

Tax on Post Office MIS

There is no TDS on the Post Office MIS, but the interest income is taxable in your hands. The interest income from post office MIS used to be tax free under section 80L, but that section has been withdrawn from April 1 2005.

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Shiv Kukreja August 3, 2012 at 2:30 PM

:-)… There is a big difference between being totally Tax-Free and getting an exemption u/s 80L to make your income from these investments tax-exempt. Prior to April 1, 2005, one used to get a tax deduction of Rs. 12000 u/s 80L from interest on bank deposits, tax saving bonds, NSCs, POMIS among others.

All the interest income used to first get added to determine your gross taxable income and then deduction u/s 80L was applied. That ways interest earned over and above Rs. 12000 from all these instruments was taxable. This is on similar lines as we get exemption u/s 80C or 80D these days.

The difference lies in the language used to tell people that upto Rs. 12000 POMIS interest income was tax deductible. Interest income has always been taxable and TDS is never applied on POMIS. So I think nobody stands a chance to appeal against this Govt. notification. Sorry…

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Manual October 15, 2014 at 2:15 AM

I’m not sure why but this blog is loading very slow for me.
Is anyone else having this problem or is it a issue on my end?

I’ll check back later on and see if the problem
still exists.

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Karan August 14, 2012 at 8:01 PM

If a lady has invested Rs. 9,00,000/- in MIS and like wise getting Rs. 6,000/- interest every month. the a/c is opened jointly with her son.
so will Rs. 72,000/- shall be taxed in the hands of the lady or Rs. 36,000/- each shall be taxed in the hands of the lady as well as her son?

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Shiv Kukreja August 16, 2012 at 11:38 AM

Hi Karan… As per notification no. G.S.R. 706 (E) dated 5.9.2000 related to Post Office (Monthly Income Account) – “the depositor’s share in the balance of a joint account shall be taken as ½ or 1/3rd of such balance held in a joint account opened by two adults or three adults respectively.”

But the taxability of the interest income from POMIS joint account depends on the source of capital invested. If the son is not minor and his income has also been used to make the investment, then the interest income should be taxable in the hands of both the applicants in the proportion of the capital invested. If the mother has contributed all of the capital then the interest income will be added to the mother’s income in full.

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Karan August 16, 2012 at 1:15 PM

thanx for your advice..it was really very helpful! 🙂

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Shiv Kukreja August 16, 2012 at 1:18 PM

You are most welcome Karan!

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sujit kumar mishra October 9, 2012 at 3:09 PM

plz send any penssion plan for me…my d.o.b. 1st oct 1979.

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priyank saluja October 25, 2012 at 4:08 PM

can we take 80c deduction in mis scheme and koun2 iska benefit le skte hai

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priyank saluja October 25, 2012 at 4:13 PM

can we take 80c deduction in mis scheme deposit

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Rupesh S Mahadik October 25, 2012 at 5:09 PM

Regret to inform but you cannot claim deduction under section 80C for PO MIS. Instead you are liable to pay taxes for the Interest earned for the particular financial year.

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Srithar Madhavan, Bangalore October 29, 2012 at 11:31 AM

I want to take Small Saving Agency in karnataka., what is the procedure. kindly send me mail please.

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Shiv Kukreja October 29, 2012 at 8:35 PM

Hi Srithar… You need to contact the Post Office for the exact procedure.

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mukesh December 15, 2012 at 6:22 PM

i want invest 3-4 lakh in safe jone investment like MIS inpost office,kindly guide me by mail whre is invest.

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M S Akhter August 1, 2014 at 2:42 PM

I have invested rs 900,000 on mis joint account on 11 Jan 2011, Is max limit of rs 900,000/- on 11 Jan 2011 is cirrect.

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Shiv Kukreja August 2, 2014 at 2:50 PM

Yes, Rs. 9 lakh is the maximum investment limit in PO MIS in a joint name.

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rahul January 10, 2013 at 11:56 AM

thankyou ….. great help

jus a little confusion ..
“Tax on Post Office MIS

There is no TDS on the Post Office MIS, but the interest income is taxable in your hands. The interest income from post office MIS used to be tax free under section 80L, but that section has been withdrawn from April 1 2005.”
so this means there is no further tax reduction on 666 pm since 2005 ??

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Shiv Kukreja January 10, 2013 at 8:36 PM

Hi Rahul… It is an old article. The current interest rate on POMIS is 8.5% per annum payable monthly, there is no TDS but it is fully taxable i.e. you will have to add the interest earned in your taxabale income.

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rahul January 11, 2013 at 12:04 AM

thanks

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Muskan January 25, 2013 at 4:03 PM

If I want to invest (4.5L) in the name of a minor (3 years), is this a better option and what is the tax implication as I;m a housewife and received this money from sale of an ancestor property?

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sourabh chhabra March 6, 2013 at 5:11 PM

What if one of joint account holders of MIS dies?Should joint account still be continued?

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Manshu March 6, 2013 at 5:21 PM

Please transfer the account in your name in such a case.

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sourabh chhabra March 6, 2013 at 6:19 PM

Thanks Manshu,but considering limit of 4.5 lacs for each sharer,Are u sure it’s possible to get full control of 9.0 lacs in Mis joint acct of 2 people?Any references would be highly appreciated.

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Manshu March 7, 2013 at 6:24 PM

Sourabh – I’m sorry I didn’t realize you were also referring to the 9 lakh limit. That is a good point and I guess why else would you be interested in the question if you weren’t near the limit.

You shouldn’t get control of the full 9 lakhs and you will have to give them a death certificate immediately so they can tell you how to proceed. I’m sorry about my earlier comment. I made a mistake in fully understanding your question.

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Shiv Kukreja March 7, 2013 at 6:56 PM

Hi Sourabh and Hi Manshu… I want to add this info here – “If one of the depositors/joint holders of a Post Office MIS account dies, the account will have to be converted into a single account in the name of the surviving depositor from the date of death of the said depositor when a report to this effect is received in the post office. The Post Master/Senior Post Master will ask the surviving depositor to withdraw the excess amount, in excess of the limit prescribed for single depositor (Rs. 4.5 lakhs at present), as this amount will not carry interest from the date of death of the joint depositor. The interest already paid on this excess amount will be recovered or adjusted.”

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Himanshu Agarwal March 30, 2013 at 12:14 PM

Dear Shiv,

In this case, if the penalty (1% or 2 % depending on the time period) will be applicable while withdrawing the excess amount. Also what will happen to the 5% bonus.

Regards,

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Shiv Kukreja March 31, 2013 at 12:04 AM

Dear Himanshu,

No penalty is applicable in case of death of the depositor/joint holder in Post Office Monthly Income Scheme (POMIS). Also, as per the Manual of Post Office, “The MIS Rules clearly provide for payment of bonus where admissible on completion of maturity period of the account irrespective of the fact as to whether the account holder is/was alive or not on the date of maturity”. So, it looks to me that the bonus of 5% will be paid in full on the original deposit of Rs. 9 lakhs on maturity i.e. Rs. 45,000 (5% of Rs. 9,00,000).

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Himanshu Agarwal April 1, 2013 at 10:28 AM

Dear Shiv,

Thanks for the reply. Still confused regarding the bonus. Why the Post office will pay bonus for full Rs 9 lakhs while Rs 4.5 lakhs are already withdrawn before maturity as a excess deposit money after the death of joint holder.

If there is any issue in keeping the deposit as it is and no excess deposit is withdrawn. After maturity the deposit amount can be taken on the name of the surviving depositor.

Regards,

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Shiv Kukreja April 1, 2013 at 11:29 AM

Dear Himanshu,

I dont know the precise logic behing them paying 5% bonus even after the withdrawal of the excess amount but the language of the Post Office Manual is there for everybody to refer. As per the Manual, the bonus is payable on maturity even if the account holder is not alive.

I have not faced any such case with any of my clients, but I think one can confirm it with the Post Master/Senior Post Master, if required. This is probably some kind of “Bullet Payment” provision which is there with the PO MIS.

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Himanshu Agarwal April 1, 2013 at 12:00 PM

Thanks Shiv,

Please suggest –

If there is any issue in keeping the deposit as it is and no excess deposit is withdrawn. After maturity the deposit amount can be taken on the name of the surviving depositor.

Regards,

Reply

Shiv Kukreja April 1, 2013 at 12:12 PM

No interest will be paid on the excess amount from the date of death of the joint depositor. The interest already paid on this excess amount will also be recovered or adjusted.

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Manpreet December 8, 2014 at 4:16 PM

Hello,

My brother has a similar case that is being discussed here.
Could you give a link that provides this rule? I mean where can I find this manual ? I need to quote this “on completion of maturity period of the account irrespective of the fact as to whether the account holder is/was alive or not on the date of maturity”

Regards

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Amar R Choudhari March 22, 2013 at 12:01 AM

what should be the minimum age of a person for investing amount in post office MIS.

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Shiv Kukreja March 25, 2013 at 2:48 PM

Ten Years; a minor of 10 years and above age can open a Post Office MIS account.

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Ruchi April 27, 2013 at 9:19 AM

What is the process of transfer of a joint account ?

I have an account with my father but now we are both moving to different cities.. can I get this account transferred to my city without requiring his presence. ??

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gulam patkary May 16, 2013 at 10:34 PM

who is doing this trading i want to talk to dat guy

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Sujatha D'silva May 24, 2013 at 3:07 PM

I have invested Rs. 6000/- in MIS last month and have received Rs. 42/- as interest and got the interest amount auto-credited to my Savings Account. Thanks for the provision of auto-credit, it’s a great help. In case I want to invest more amount in MIS as and when any amount is availble with me in future, it seems I have to open a separate Account instead of adding the new amount to my alrwady existing MIS Accounts. It is very uncomfortable as the accounts are going to be splitted up and I will have to maintain a number of Accounts till I complete the amount of 4.5 lakhs. Instead of having No. of Accounts, the MIS Account for one single person should be only one, whenever any person is investing in this Scheme at different times the short amounts should be added to the original MIS Account and interest calculated accordingly. This will help the customer in maintaining only one Single Account than a number of Accounts. – Suggestion Please.

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Manshu May 24, 2013 at 9:20 PM

To the best of my knowledge, this is the situation as it stands today, and there’s nothing that can be done about it right now.

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Shiv Kukreja May 25, 2013 at 11:31 AM

Hi Sujatha… One suggestion would be to open a Post Office Recurring Deposit account in which rate of interest is similar at 8.30% p.a., but the only thing is it does not pay interest on a monthly basis.

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M S Akhter August 1, 2014 at 2:59 PM

what is the proceedure for auto credit of my monthly intrest in the saving bank account

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Shiv Kukreja August 2, 2014 at 2:53 PM

You need to get a savings account opened with the post office and you can get the monthly interest transferred into that account. Cheque book facility is also there with the post office.

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Arun July 15, 2013 at 11:16 PM

I have an mis a/c of Rs. 450000. I also want to invest Rs. 900000 tripple joint in mis is it possible

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Shiv Kukreja July 25, 2013 at 12:28 PM

Hi Arun,
A single Post Office MIS account can be opened for a maximum of Rs. 4.5 lakhs and a joint account by two or three adults can be opened for a maximu of Rs. 9 lakhs.

Three persons can open three single accounts for Rs. 4.5 lakhs each totalling to Rs. 13.5 lakhs. These three persons can invest Rs. 13.5 lakhs jointly in three joint accounts of 4.5 lakhs each or by opening two accounts, one for Rs. 9 lakhs and other for Rs. 4.5 lakhs in order to complete the share Rs. 4.5 lakhs of each adult.

Similarly, a guardian can open a separate account on behalf of each minor for Rs. 4.5 lakhs.

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Raka Ghosh July 24, 2013 at 10:08 AM

I have a post office mis jointly with my husband. I am the second holder. Can I add the interest to my source of income rather than his?

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Shiv Kukreja July 25, 2013 at 2:04 PM

Hi Mrs. Ghosh,
I’m not 100% sure about it, but I think the interest income is taxable in the proportion of your respective contributions while doing this investment. If the whole of the contribution is made by the first holder, then it will be added to the income of the first holder. So, you can show the interest income as your income, if the whole of the investment was made by your source of funds.

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sanket patel July 24, 2013 at 7:16 PM

What is the charges on maturity of MIS if mode of payment is by cheque.?

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Shiv Kukreja July 25, 2013 at 2:07 PM

Hi Sanket,
I dont think there are any charges.

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sapanpreet November 16, 2013 at 10:02 PM

sir mai naya hu post office mei 10 lakhs post office me invest karne ki sochi hai abhi mai 20 yrs ka hu or mere dad expired ho gaye the 10 yrs phele ab mai or meri mummy rehte hai meri mummy ki age 55 yrs hai sir mai monthly income chahta hu atleast 10.000 per month please yeh possible hai post office mai or kasie please guide me

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birendra December 6, 2013 at 1:22 PM

Can MIS in P.O. open for Rs.900000 .00 again in joint a/c , if it is opereted previously for the same amount in jpint name

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RAJAN SHAH January 22, 2014 at 8:32 PM

Sir,

at present what is the maturity period for this scheme & what is the rate of interest?
I heard that there is no bonus for the amount invested. Is that true?

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Shiv Kukreja January 22, 2014 at 11:33 PM

Hi Rajan,
Maturity period of Post Office MIS is 5 years at present and it carries 8.40% p.a. rate of interest. Also, it is true that bonus is not payable on MIS anymore.

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Shiv Kukreja January 22, 2014 at 11:54 PM
Pramod Hadap February 6, 2014 at 1:17 PM

I have deposited some amount in Post Office MIS in Joint ‘B’ holder with my spouse name. I have also a S.B. Account in the same Post Office standing single holder by name. Now the monthly interest can be drawn through auto credit in to saving account standing my single name at same post office?

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Shiv Kukreja February 20, 2014 at 12:20 PM

Hi Pramod,

Though I am not 100% sure about it, but I think you need to have a joint savings account for the same.

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kan S February 17, 2014 at 10:07 PM

Sir,
A depositor has 3 MIS a/c. One opened during nov.2008 and other 2 opened during june 2010. The depositor has deceased. All have nominations.
1. Can the nominee keep the deposits until maturity to avail bonus ?
2. If yes, whether to intimate PO alongwith death certificate and transfer it in nominee’s name ?
3. Since, no penalty for claim before maturity, will the PO force us to withdraw and what will happen to bonus ?

Pl clarify on the above sir,

Reply

Shiv Kukreja February 20, 2014 at 12:43 PM

Hi Kan S,

As per the Post Office rules, in the event of death of the depositor, the MIS account will have to be closed and the deposit will get paid to the nominee along with the interest due.

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Kumar February 20, 2014 at 6:37 AM

Hi, After 5 years the total sum will be depostited back to the savings account (or) if desired it can kept for further in MIS scheme. If yes how many years it can be kept in MIS.

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Shiv Kukreja February 20, 2014 at 12:50 PM

Hi Kumar,

With Post Office MIS, if you do not withdraw your deposit on maturity, then simple post office savings bank interest gets paid for a maximum period of 2 years from the date of maturity.

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J Chaturvedi February 22, 2014 at 11:49 PM

For the latest information go to: http://www.indiapost.gov.in/MIS.aspx

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S P SINGH March 21, 2014 at 5:50 PM

Sir , I want to know that , Is it possible to take loan either from my deposited MIS amount ( 9 lakh ) or from post office as loan ?

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Shiv Kukreja March 21, 2014 at 8:52 PM

Loan facility is not available against Post Office MIS deposit. Also, post offices don’t provide any kind of loan. You can have loan against PPF though, if you have PPF account.

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siddharth saini April 4, 2014 at 12:33 PM

hello,
i have invested Rs.210000 in MIS in January 2010, now i want to withdraw the same MIS.
Please tell me the procedure and deductions.

thanking you
siddharth

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Abhinay April 28, 2014 at 6:33 PM

I have deposited Rs. 4,50,000 in minor son’s name in post office MIS. Can I get the monthly interest deposited in the savings bank of SBI or ICICI Bank as I am not in a position to go to post office monthly to withdraw the money. Please advise.

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Shiv Kukreja April 30, 2014 at 10:01 PM

Hi Abhinay,
I don’t think it is possible. You can open a new post office savings account and get the monthly interest transferred to it. For a minor’s account, age of the child should be 10 years plus.

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abhishek June 2, 2014 at 12:15 AM

I want to open an mis of rupees 4lac what is rate of interest now.pls kindly inform me

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Shiv Kukreja June 2, 2014 at 10:15 PM

Hi Abhishek,
It is 8.40% p.a. payable monthly.

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JC August 13, 2014 at 10:01 PM

Roughly it is Rs.700 per month for every lakh.

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sourav June 15, 2014 at 10:39 AM

Can I open two accounts in two different post office to the amount of rs 4.5 lakhs in a single holder.
Please guide.

Rgds
Sourav

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JC October 4, 2014 at 1:35 PM

No. Would be illegal.

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JC October 4, 2014 at 1:49 PM

PL ignore the above comment.

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Pooja June 15, 2014 at 4:09 PM

Hi, could you pls give me an eg. of tds amount that will get deduct from the monthly interest ? if i wish to put suppose Rs.10000 in POMIS than could you pls help me in calculating the interest i will get excluding te tax?

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Biswajit July 7, 2014 at 4:57 PM

Hi
My name is Biswajit from west Bengal well there is an urgent requirement of money due to my sister marriage next week . I am into MIS since 4 months . Is there any way out to withdraw the mis or take a loan against my deposit of 150000. Please help me guys its very urgent .

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shivi July 11, 2014 at 9:53 PM

sir
what to do in case of MIS post matured.i mean how to calculate interest in that case?

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Rupesh S Mahadik July 14, 2014 at 1:06 PM

In case of MIS interest is paid monthly, so at the end i.e on Maturity you will be getting your principal invested amount back with bonus if applicable at that time, becuase since the last 1-2 years bonus have been cancelled.

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vivek July 26, 2014 at 7:30 PM

i just wanted to clarify one thing if i will deposit 1000000 laks for 5 year so i will get 8.5% interest per month after 5 year once my maturity will finish how much bonus should i receive

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Shiv Kukreja July 28, 2014 at 9:22 PM

Hi Vivek,
Bonus has been discontinued by the government in Post Office MIS w.e.f. 1st December, 2011. So, you’ll not get any bonus now.

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J.vaijayanthi August 7, 2014 at 6:04 PM

I invested on 19-6-2008, a sum of Rs.3 lakhs in Indian post office MIS scheme and the monthly interest is automatically credited into RD. How much I will get at the end including bonus etc. I did not take any loan/ withdrawal in the middle and continued the whole tenure of 6 years as well as in MIS and RD

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Shiv Kukreja August 12, 2014 at 6:57 PM

You need to contact the post office guys to get the details of maturity proceeds.

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Mrs. Leela R Patil August 20, 2014 at 1:28 PM

Sir I deposited Rs. 4.5 lakhs(sole holder) in post office MIS scheme in Nov.2010. one year later I deposited another 4.5 lakhs (with my son as joint holder. Both were done through the same agent. Now the post office(Vasco) says the entire 9 lakhs had to be joint holding. They say they will recover the interest paid to me in the second account(joint holding i.e interest on 2.25 lakhs). Kindly advise. Thank you

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Shiv Kukreja August 21, 2014 at 11:14 AM

Hi Mrs. Leela,
With Post Office MIS, you can deposit a maximum of Rs. 4.5 lakh in a single name and Rs. 9 lakh in joint names. In your case, it is more than Rs. 4.5 lakh in a single name, so the post office is right in recovering the extra interest paid to you.

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Sunil Kumar September 7, 2014 at 5:28 PM

Dear Sir,

I am looking for compound interest plan, is there any plan as such in which I can earn near to 1 Cr Rs at the end of my 55 I am 24 now.

Thanks.

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JC September 10, 2014 at 7:43 PM

Try recurrent deposit of Rs.5000.00 per month at 9% interest for 31 years. Would give you Rs.100,74,937.18 .

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Sunil Kumar September 15, 2014 at 6:17 PM

May I know which bank is offering this?

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JC October 4, 2014 at 1:32 PM

Suggestion:
1)You can open a PPF account and deposit Rs.5500.00 per month.
2)Interest would be tax free.
3)80c benefit in IT.
4)After 15 yrs,extend in batches of 5 yrs.
5)Rate of interest may vary year to year.

Year Rate Interest Scheduled Deposits Balance

1 8.70% 2,696.40 66,000.00 68,696.40
2 8.70% 8,917.16 66,000.00 1,43,613.56
3 8.70% 15,701.23 66,000.00 2,25,314.79
4 8.70% 23,099.63 66,000.00 3,14,414.42
5 8.70% 31,167.99 66,000.00 4,11,582.42
6 8.70% 39,966.98 66,000.00 5,17,549.39
7 8.70% 49,562.75 66,000.00 6,33,112.14
8 8.70% 60,027.46 66,000.00 7,59,139.60
9 8.70% 71,439.79 66,000.00 8,96,579.39
10 8.70% 83,885.56 66,000.00 10,46,464.95
11 8.70% 97,458.35 66,000.00 12,09,923.29
12 8.70% 1,12,260.21 66,000.00 13,88,183.51
13 8.70% 1,28,402.45 66,000.00 15,82,585.96
14 8.70% 1,46,006.44 66,000.00 17,94,592.39
15 8.70% 1,65,204.54 66,000.00 20,25,796.93
16 8.70% 1,86,141.12 66,000.00 22,77,938.05
17 8.70% 2,08,973.59 66,000.00 25,52,911.64
18 8.70% 2,33,873.64 66,000.00 28,52,785.28
19 8.70% 2,61,028.51 66,000.00 31,79,813.79
20 8.70% 2,90,642.36 66,000.00 35,36,456.15
21 8.70% 3,22,937.87 66,000.00 39,25,394.02
22 8.70% 3,58,157.89 66,000.00 43,49,551.91
23 8.70% 3,96,567.23 66,000.00 48,12,119.13
24 8.70% 4,38,454.70 66,000.00 53,16,573.83
25 8.70% 4,84,135.27 66,000.00 58,66,709.10
26 8.70% 5,33,952.40 66,000.00 64,66,661.50
27 8.70% 5,88,280.70 66,000.00 71,20,942.21
28 8.70% 6,47,528.66 66,000.00 78,34,470.87
29 8.70% 7,12,141.78 66,000.00 86,12,612.65
30 8.70% 7,82,605.90 66,000.00 94,61,218.56
31 8.70% 8,59,450.86 66,000.00 103,86,669.42

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pd September 11, 2014 at 3:59 PM

hey i have this mis scheme.and i have this account from 2011..so it is illegible for the bonus.i want to know if i withdraw some amount from this account i m still illegible for the bonus at the six year maturity date??or bonus is cancelled out because of the withdrawal off that amount????

Reply

Shiv Kukreja September 15, 2014 at 11:26 AM

Premature withdrawal is not permitted in Post Office MIS account. However, you can get it closed prematurely. There are penalty provisions in case of premature closure, so you should not expect any bonus in case you decide to close it before maturity.

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imran khan September 13, 2014 at 2:19 PM

I have to deposit a Cheque of MIS after maturity into my accoutn but it was lost and time period of three months validity of cheques also passed now what should i do to re issue my cheque from post office so that i can now deposit it within time .. please send me reply in my email

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Shiv Kukreja September 15, 2014 at 11:30 AM

You should approach the post office and request them to reissue the maturity cheque to you.

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Anjana Ka September 21, 2014 at 5:10 PM

I have my Mis with full limit have 2 daughters one of 15 & other of 5year can I deposit 4.5 lakhs separate by opening their mis.pls tell for both

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JC September 30, 2014 at 2:42 AM

Account can be opened in the name of a minor. Minor of 10 years and above age can open and operate the account. So yes for the elder daughter,but no for the younger one.
Pl refer to http://www.indiapost.gov.in/POSB.aspx

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Radhey Mohan September 25, 2014 at 10:43 AM

Dear Sir,
I would like to know whether both Joint Holders of MIS Account (Total Rs. 900000) should have the same address or they can have different address.

Thanks & Regards,
Radhey MOhan

Reply

anshika November 7, 2014 at 7:37 AM

Dear sir
If I deposit rs.10000 in this scheme so how much amount of interest should I get per month.

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JC November 11, 2014 at 12:19 AM

Deposit should be in multiple of Rs.1500.00. Therefore for Rs.10500.00, monthly payout would be Rs.74.00.

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ghanshyam singh November 7, 2014 at 7:32 PM

sir,
My father having a MIS of Rs. 3 lakhs, for which I am nominee.
above MIS will mature on June 2016.
But my father expired on 25 the September 2014.
please suggest me what to do.

Reply

JC November 11, 2014 at 12:13 AM

The account stops after death. You can claim the amount of Rs.300000.00 in the prescribed form alongwith death certificate.
Form is available at: http://www.indiapost.gov.in/pdfForms/ClaimApplnforNomnhasbeenRegdwithPO.pdf.
Change Savings to MIS in the heading.

Reply

subhasis chakraborty November 9, 2014 at 12:36 PM

Dear Sir,
my father opened a mis joint account with my mother at post office.
but my father expired on 09th july 2014, therefore i want to nominee
in that accounts so what is the procedure.

thanking u
subhasis

Reply

Amiya Das Gupta November 11, 2014 at 2:20 PM

Dear Sir, I have just opened one PPF A/c March 13 onwards in my name. I am Investing 8000/-pm Please suggest for my future retirement. After completion can I Invest all the maturity amount through Post office MIS. How much I can get per month.

Reply

amit Patel November 21, 2014 at 8:24 AM

Dear Sir,
I have 2 uncle both are unmarried but my one uncle was no more and he had invest amount 4,00,000/- in mis in post
they have joint account in this with his friend ,now his friend want to withdraw amount and want to cheat with us
so
>> I kindly request you to give suggestion how we stop him ??
>>Is their any rule in post to block amount if one of joint holder was died ??
>> is required Genealogy ??

Reply

Shiv Kukreja December 24, 2014 at 12:26 AM

Hi Amit,
In this case, the nominee or your uncle’s legal heir should visit the post office and claim your uncle’s money. You can ask for the precise procedure at the post office.

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ravi singh rathore December 19, 2014 at 3:31 PM

sir,
my grandfather opened a mis account in the year 2010.
So on maturity the amount is eligible for bonus of 5%? As since 2012 no bonus will be provided under this scheme.As my grandpa had opened an account in 2010 so i want tob know whether he will get bonus of 5% as no bonus provision came in 2012.pls rply its urgent.

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Shiv Kukreja December 24, 2014 at 12:27 AM

Hi Ravi,
Your grandfather will get the 5% bonus.

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abc December 23, 2014 at 11:43 AM

what is the taxability of Bonus received in post MIS scheme.

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abc December 23, 2014 at 11:49 AM

it is taxable under the head income from other source.

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snehal January 27, 2015 at 8:25 AM

I am a joint holder of mis with my mother. Can she alone withdraw the mis on maturity or my presence is requried

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Shiv Kukreja January 29, 2015 at 12:05 PM

You would be required to sign the withdrawal form. You physical presence is not required.

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gpatra February 9, 2015 at 1:46 PM

1. Can the joint MIS account( with three names) be transferred to other post office, if second named a/c holder( having the Pss Book with him) apply for the transfer or Whether the signatures of all 3 a/c holders are must ?
2. Can the monthly interest withdrawal from joint MIS account be stopped or the account be freezed as per the prayer of one of the joint a/c holder for not receiving the share of his monthly interest ?

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Shiv Kukreja February 12, 2015 at 8:36 PM

Sorry, you need to contact the post office in your area for your queries.

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ashoke mukhopadhyay February 15, 2015 at 8:51 AM

i am a retired person &having a m.i.s since 2010 in a post-office(kolkata writers building)&getting mis interest regularly in my bank account through ecs but suddenly post office has stopped such transfer of interest to my bank account without any intimation to me.
After quary to the post office they informed that govt has withdrawn such ecs facility &i have to open a saving account in this branch to get the monly interest.
plese inform me what i will do now since i deposit the fund in post office mis since they are having an ecs facility during opening my mis account &now i have no other alternative to premature closure of my mis saving with penalty&without bonus.
it is evident from central govt above action that they are not in a favour of small scale saving in practice.

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dipti February 25, 2015 at 4:02 PM

Iam getting the MIS int regularly in uninted bank of India,may I get the matured amount with bonus in the same bank directly on request

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dipti February 25, 2015 at 4:06 PM

I am getting MIS int in ubi ,may Iget the matured amount in the same bank on request

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avinash March 9, 2015 at 11:32 PM

I want to invest 2000 rs per month what should I do….pls pls help me

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Devashree March 14, 2015 at 11:29 PM

Hello Sir,
I have invested Rs.9,00,000 in MIS in a post office . It’s a Joint Account and it is written as Joint ‘B’ there on the Passbook . What does this Joint ‘B’ mean ? Kindly give me the explaination.

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SUNIL KUMAR July 2, 2015 at 2:14 AM

dear sir
I have a MIS A/C of 600000 in bistupur office in jamshedpur in joint B.I am account holder with my two yelder brother but i have not a pass book of the account and they not give me a any type of money .Plz sugess me what i can do or process to stop the payment? for this i will be thanking for you .

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C E VISWAN October 8, 2015 at 2:53 PM

MIS interest stopped going to designated bank account of your choice. instead Post office dictated that you open an SB Account in the Post Office to credit the interest. I wen thrice to open the account. Everytime there wee hurdles including printer out of order, staff leave, come after three month of open SB Account. How can the Post Office babus think of starting bank service when they never really worked in life. I am a victim of dumping Rs 3 L in park street, Kolkata PO and not able to collect even interest after Dec 2014 when the Post Master sent a letter advising me to open the SB Account which they never open..what a trick.

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KUL BHUSHAN DHAWAN March 15, 2015 at 9:18 PM

Dear Sir,
Joint ‘B’ means any one of the joint holders can operate the account as well as withdraw the amount from the MIS Account.
— KB DHAWAN

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RAKHI BHATTACHARYYA March 28, 2015 at 9:11 AM

Dear Sir,
My Teacher open a MIS joint b type account in a post office at Uttarpara in Hooghly district ,West Bengal on Feb,2009, She is the 1st person & her elder sister is 2nd person. But after maturity on February 2015, She can’t withdraw the account because the Post office
demands ID and Address Proof of both account holder and my teacher is 73 years old and her elder sister is 78 years old and live in Bangalore and she is unable to send her documents due to age and illness…
So what my teacher can do..Please help me

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C E VISWAN October 8, 2015 at 2:58 PM

you will go back to the post office . the moment they say irrational things, but… spit on their face.

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Ayan Chatterjee May 3, 2015 at 12:19 PM

what is minimum age requered for openning mis account?

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Ayan Chatterjee May 3, 2015 at 12:20 PM

what is minimum age required for openning mis account?

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Sid Ghosh June 2, 2015 at 12:04 AM

Hi all,

I need your help urgently. Actually my father did a MIS of Rs 75000 in our local post office. The MIS A/C has got three members –
First holder: me
Second holder: my elder sister
Third holder: my father

My father died on June 2013 and I have the death certificate of my dad. Also I have got my all KYC documents. Now the MIS has been matured but I can’t withdraw any money as my elder sister intentionally not proving any photocopy of her KYC documents.

Please suggest me what should I do in this situation.

Thanks,

– S Ghosh

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Sid Ghosh June 2, 2015 at 12:08 AM

Hi all,

I need your help urgently. Actually my father did a MIS of Rs 75000 in our local post office. The MIS A/C has got three members –
First holder: me
Second holder: my elder sister
Third holder: my father

My father died on June 2013 and I have the death certificate of my dad. Also I have got my all KYC documents. Now the MIS has been matured but I can’t withdraw any money as my elder sister intentionally not providing any photocopy of her KYC documents.

Please suggest me what should I do in this situation.

Thanks,

– S Ghosh

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Andy June 20, 2015 at 1:57 AM

Can you let me know the process of redeeming post office savings after maturity? Can the withdrawal be made from another branch?

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Seema July 13, 2015 at 5:06 PM

Hi my father didn’t show the interest in his income tax for five years and now he is worried that after 5 years when he got all d money and if he will get any penalty from income tax?

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B D'Costa July 18, 2015 at 5:40 PM

In shifting residence I have lost the pass books for the MIS of the postoffice scheme which i invested. Now i need to claim as the investments have matured. Please tell me what to do.

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jitendra kumar July 28, 2015 at 2:28 PM

Ghh

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Harinder Singh August 10, 2015 at 6:03 AM

Sir,

how do i track/view my investments through post office i.e. RD/MIS or other savings in one go.

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mayank August 29, 2015 at 2:15 AM

Sir , as per IT act 194A TDs to be deducted by post office on credit of interest to payee when interest amt exceed 10000 .
Then, why TDs is not deducted by off

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chetan sharma September 4, 2015 at 10:00 PM

Sir i am intersted in mis scheme plz suggested to mis scheme

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Sanjeev kumar September 12, 2015 at 3:52 PM

Sir post offiCe clerk ne total mis 451500 kar di jo ki singal name meiu 450000 Honie jhi ye kah kar di ke koi far nahi partha agent ko kah diya. Ab 1month bad interest ke time post master kha raha ye to galt ho gaya.ab ap bato meiu kya karo mera nuksan ho raha 1 Mis cancal kara ke nai banwane per pl. Advise me

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Sanjeev kumar September 12, 2015 at 4:07 PM

Post Office clerk ki compliant kaha kare.

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Shree September 15, 2015 at 12:43 PM

Dear Sir,
In the procedure to withdraw the MIS Account amount (Joint Holders) ;
do we need to submit MIS Passbook to Post Office ?

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Sakthivel October 21, 2015 at 3:35 PM

Dear Sir, my MIS in Goregaon PO is matured this month but they are not giving cheque. They say it will be transferred to PO saving account l. I do not have a PO savings bank account. How can I get my matured MIS

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govardanan November 9, 2015 at 9:31 PM

on maturity of MIS, when submitted, Post office people say there is signature variation and hence the person in whose name the mis is made has to come in person for closure. Can the nominee sign and get back the maturity amount or the maturity amount can be transferred to mis holders account with nominees signature with account holders authorisation. or simply is it mandatory that only account holder has to be present in person to receive the maturity amount?

pl. reply

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H.R. KRISHNAN November 18, 2015 at 11:58 AM

Dear Sir,

Can you please clarify the following :

Suppose A & B having a joint B account in Post Office MIS for Rs.900000/-. How the interest is to be taken in to their account which filing their respective income tax return?
Is it 50:50? or
According to the first named depositor? or
According to the source of income provided? or
whatelse?

Thanks

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Trupti Malekar November 22, 2015 at 11:45 PM

My parents were having 2 joint a/c in POMIS each of Rs.300000/- from 28/08/2010. My mother expired on 22/09/2015. So our post office suggest my father to close one account because as a single a/c he was crossing the prescribe limit.
In this case PO charged him 1% penalty as Premature closing. On the other hand PO processed this transaction as Death claim and prepared cheque worth Rs.315000/-. While paying to my father they are asking 18000/- as cash which is difference of (315000-(300000-1% penalty)).
What is correct procedure to handle this situation?

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Sam November 24, 2015 at 3:08 AM

Hello sir,
My father opened an mis in Mumbai 5 years back and now it is matured. He wants to widthdraw it but the passbook is in another city in my brothers house. Can he request for transfer in his local post office and widthdraw the amount with his certificate number?

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Sam November 24, 2015 at 3:08 AM

Please note my father is living in ranchi

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pretam sarkar November 28, 2015 at 12:51 AM

what happened if i mis 4.5 lakh in 1 bank & 4.5 lakh in other bank.

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Sudip Das December 28, 2015 at 5:12 PM

Dear Sir,

I deposited some money under MIS to Dharmatala PO, Writers’ Building PO, Income Tax PO and Park Street PO. Now, from this month the above post offices refuse to pay MIS by withdrawal slip else they insist me to open a Savings account in that PO. I came to know that in your recent circular, while opening account in Park Street HPO, they told me that as per recent circular received by them on 19.12.15 payment of MIS will be made as usual and no Savings A/c need to be opened for that. But the other POs insist me to open an account with them. Please tell me how many PO accounts will be opened by me? Can I transfer all my deposits from other POS to a single Po? Please advice.

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Amar Rajput January 3, 2016 at 8:56 PM

Can I invest Rs1500 the 1st month and then different amounts such as 3000 or 4500 the next months..in the Post Office MIS or its a fixed amount investment scheme?

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Samir Kumar Das January 5, 2016 at 8:34 PM

My MIS interest lying with Kolkata GPO and this account is due after 6 years i.e.on 08-01-2016. I am living at Hindmotor,Hooghly and also opened a savings a/c at Hindmotor post office. Now how I can transfer /credit my accumulated interest and original MIS maturity money? pl. tell me the way of getting such money

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T Ramachandran January 8, 2016 at 7:43 PM

I had opened a MIS account for Rs.66000/- i 2010 and at that time bonus was 10% on maturity. Subsequently, after 2 to 3 years, they changed the bonus to 5% for new accounts. Now when I surrendered the MIS account for closure, Post Office paid me only 66,000/- plus 5% bonus i.e, Rs.3,3000 instead Rs. 6,600/-. Is this correct? Or I am eligible to get 10% bonus. Please clarify thru my e-mail.

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Rupesh S Mahadik January 9, 2016 at 8:25 AM

Are you sure about the 10% maturity bonus in 2010, because as per my information prior to FEB 2006 the bonus was 10% & in FEB 2006 the same was discontinued but w.e.f. December 8, 2007 the government has reintroduced the bonus option on maturity in the scheme but with a lower rate of 5%. Further I myself have a MIS opened in AUG 2010 & right from that time itself I am aware that the Maturity Bonus is 5%.

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rakesh ranjan sahoo January 12, 2016 at 11:38 PM

hi can i open more than 1 MIS say in different post offices

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omparkash January 16, 2016 at 8:39 PM

Sir
My self omparkash .my father open TD A/C IN POST OFFICE YEAR 2014 INVEST AMT IN- 50000 NOMINEE IS MY MOTHER AND SISTER NAME IS DAYAWATI AND SUNITA ( KAMLESH)unfortunate my father is expire to Oct 2015 my sister nick name is Sunita but school document and I’d prof is kamlesh k naam s h post office service women ka khana h ki aapko y money nhi milegi because aapki sister k I’d prof sab kamlesh k naam s h so plz sir I need help u ..mujhe aap is a/c ka. Claim ka prossiger bato WO medem to mana kr rehi h k mujhe iske claim k bare m nhi pata aap kisi or sinior department m baat karo iske liye ….plz sir aap mujhe batye ki y claim kaise hoga…plz plz

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Tousif pasha March 1, 2016 at 7:31 PM

I want to invest money for monthly income plz call me 9663278177

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GR March 10, 2016 at 10:39 AM

Is Bonus paid of 5% at the time of maturity, taxable under Income Tax Rules in India?

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rajesh kumar sharma March 15, 2016 at 3:29 PM

death ke bad bonus milega ya nahi our death ke bad intt milega ya nahi a/c mature ho gayi hai

Reply

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