Post Office Monthly Income Scheme (PO-MIS) is a good scheme to generate fixed income every month by depositing a fixed amount. We have designed a simple excel based Post Office MIS calculator where you can input the investment amount, interest rate and it will calculate monthly income and maturity value.
Post Office MIS Calculator
Calculating Post Office MIS monthly interest payout is pretty simple using the formula below:
Monthly Interest in POMIS = Amount Invested * Annual interest Rate/12
Using this formula, if you invest Rs 1 Lakh at 7.7% interest, the monthly interest payout is Rs 642 (1,00,000 * 7.7%/12)
Also Read: 11 Investments to get Monthly Income in India
Post Office MIS Investment Rules:
The maximum investment limit is Rs 4.5 lakh for individuals and Rs 9 lakh in case of joint account.
The minimum investment amount is Rs 1,500 (Investment can be made in multiples of 1500)
The tenure for Post Office MIS is 5 years and can be extended to another 5 years on maturity.
On maturity, the principal amount is returned back to the investor.
From April 1, 2016 the interest rate on Post Office MIS is reset every quarter i.e. in April, July, October and January. For FY 2019-20 (April to June 2019) the interest rate is 7.70%. Check latest and historical interest rates here.
Interests are paid monthly under this scheme. There is no additional interest for senior citizens.
You must also have or open Post Office Savings account where the monthly interest payment would be credited.
Premature closure of POMIS is allowed after completion of 1 year. If the account is closed between 1 to 3 years, 2% of the deposited amount is deducted as penalty. The penalty is 1% if the POMIS is closed after 3 years.
Also Read: All you wanted to know about Post Office MIS
Tax on Post Office MIS Scheme:
There is NO TDS on the Post Office MIS. However, the interest received is fully taxable at applicable marginal income tax rates.
Effective April 1, 2018 Interest income up to Rs 50,000 is exempted from tax for Senior citizens u/s 80TTB [Budget 2018]
Download: Free ebook for Income Tax Planning for FY 2019-20
Calculating interest payout on Post Office MIS is simple and can be done as explained above in the post. In case you have issue regarding the same just download simple excel based Post Office MIS calculator.