Mitali
Quick Summary
Post Office MIS Scheme is a government-backed savings plan offered through India Post that allows an investor to deposit a lump sum and receive interest every month.
Eligibility To Open Post Office MIS Scheme
- Resident of India.
- Minor below 10 years - guardian operates the account.
- Minor above 10 Years - can open and operate an account in their own name.
Note: When minor reaching 18 years - the existing account can be converted from minor to major status by submitting the required form and KYC documents.
Explore More in Details - Post Office Monthly Income Scheme 2026
Quick Summary
| MIS Interest Rate | 7.4% p.a |
| Interest Payout | Monthly |
| Minimum Deposit Limit | ₹1,000 (multiples of ₹1,000) |
| Maximum Single Account | ₹9 lakh |
| Maximum Joint Account | ₹15 lakh |
| Joint holders | 2 or 3 adults |
| Deposit type | One-time deposit |
| Maturity | 5 years |
Joint Account Structures - Major Update
| Particulars | Joint A | Joint B |
| Maximum a/c holders | Up to 3 adults | Up to 3 adults |
| Who can operate | All depositors jointly | Any one depositor |
| Individual operation | Not allowed | Allowed |
| Convenience | Less convenient | More convenient |
| Death of one joint holder | Surviving depositors operates jointly | Surviving depositors operates separatly |
Share Structures of Holders
- With two holders - Each holder is considered to have a 50% share.
- With three holders - Each holder is considered to have a one-third share.
Premature Withdrawal Rules
- First Year - No withdrawal is allowed during the first year.
- After 1 Year but Before 3 Years - 2% deduction from the deposit applies.
- After 3 Years but Before 5 Years - 1% deduction from the deposit applies.
Note: Form 3 is required Normal Closure after 5 years.
Taxability
Is MIS Interest is Taxable?
Yes, Post Office Monthly Income Scheme is fully taxable in the hands of the depositor.
Is There Any Tax Exemption on Interest?
No. Post Office MIS does not qualify for deduction under Section 80C.
TDS on MIS Interest
No TDS is deducted from Post Office MIS interest.
CAclubindia
