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POMIS interest reckoning for tax

Raghavendra Kamath (164 Points)

25 September 2020

POMIS is a monthly interest plan. How the interest is considered for income tax? yearly or at the time of maturity?

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Shreya Bafna (200 Points)
Replied 25 September 2020

Post office monthly income scheme is a scheme where investors get a fixed income every month on the invested sum.

The interest income is taxable and the contribution doesn't give tax deduction( i.e no 80 C).However no tds is deducted.So interest will be taxed yearly and not at the time of maturity ( Just like FD interest).