Contents
- 1 POMIS Calculator — Post Office Monthly Income Scheme
POMIS Calculator — Post Office Monthly Income Scheme
Calculate monthly income from Post Office Monthly Income Scheme. 7.4% p.a., 5-year tenure, up to ₹9 lakh single / ₹15 lakh joint.
What is POMIS?
Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme where you deposit a lump sum and receive fixed monthly interest payouts for 5 years. At maturity, your entire principal is refunded. It’s designed for risk-averse investors seeking predictable monthly income — ideal for retirees, homemakers, and those building income ladders.
Why POMIS Appeals to Conservative Investors
- Sovereign-backed: Government of India guarantee — zero default risk
- Fixed monthly income: Same amount credited every month for 5 years
- Capital protection: Principal fully refunded at maturity
- No market risk: Returns independent of stock/bond markets
- Easy operation: Available at any post office across India
POMIS Features Summary
| Current Rate (Q1 FY 2025-26) | 7.4% p.a. |
| Tenure | 5 years (single tenure, no extension) |
| Minimum Deposit | ₹1,000 (multiples of ₹1,000) |
| Maximum (Single Account) | ₹9,00,000 (raised from ₹4.5L in Budget 2023) |
| Maximum (Joint Account, 2-3 holders) | ₹15,00,000 (raised from ₹9L in Budget 2023) |
| Eligibility | Resident Indian adult; minor 10+ in own name |
| Number of Accounts | No limit, but combined deposit cannot exceed ceiling |
| Interest Payout | Monthly (1st of every month, post first month) |
| Premature Withdrawal | Allowed after 1 year (with penalty) |
| Section 80C | NO (POMIS deposit is not eligible for 80C) |
| TDS | NO TDS on POMIS interest (but you must report) |
Monthly Income at Different Deposits
| Deposit Amount | Monthly Income (@ 7.4%) | Annual Income |
|---|---|---|
| ₹1,00,000 | ₹617 | ₹7,400 |
| ₹3,00,000 | ₹1,850 | ₹22,200 |
| ₹5,00,000 | ₹3,083 | ₹37,000 |
| ₹9,00,000 (Max Single) | ₹5,550 | ₹66,600 |
| ₹12,00,000 (Joint) | ₹7,400 | ₹88,800 |
| ₹15,00,000 (Max Joint) | ₹9,250 | ₹1,11,000 |
Premature Withdrawal Rules
| When You Withdraw | Penalty |
|---|---|
| Before 1 year | Not allowed |
| 1 to 3 years | 2% of principal deducted |
| 3 to 5 years | 1% of principal deducted |
| At 5 years (maturity) | No penalty — full principal returned |
On death of holder, nominee can claim with death certificate + Form F. Interest is paid till date of death; principal refunded without penalty.
Tax Treatment
- No Section 80C deduction on deposit (unlike PPF, SCSS, NSC)
- Interest is fully taxable at slab rate under “Income from Other Sources”
- No TDS on POMIS — but onus to report is on investor
- Section 80TTB: Senior citizens get ₹50,000 deduction on total interest (savings, FD, RD, SCSS, POMIS combined)
- Section 80TTA: Non-seniors get only ₹10,000 deduction (on savings account interest, NOT POMIS)
- Capital received at maturity is NOT taxable (return of principal, not income)
Effective Returns by Tax Slab
| Tax Slab | Pre-Tax Rate | Post-Tax Rate |
|---|---|---|
| Nil (no taxable income) | 7.4% | 7.4% |
| 5% | 7.4% | 7.03% |
| 20% | 7.4% | 5.92% |
| 30% | 7.4% | 5.18% |
POMIS vs Other Monthly Income Options
| Option | Rate | Tenure | Risk | Tax |
|---|---|---|---|---|
| POMIS | 7.4% | 5 yrs | Zero (govt) | Interest taxable, no 80C |
| SCSS (60+ only) | 8.2% | 5+3 yrs | Zero (govt) | 80C eligible, interest taxable |
| Bank Monthly Income FD | 6.5-7.5% | 1-10 yrs | Up to ₹5L DICGC | 10% TDS >₹40K, interest taxable |
| RBI Floating Rate Bonds | 8.05% | 7 yrs | Zero (govt) | Interest taxable, half-yearly payout |
| Tax-Free Bonds (secondary) | 5.5-6.5% | 10-20 yrs | Low (PSU) | Fully tax-free interest |
| Mutual Fund SWP (Debt) | 6-8% target | Flexible | Low-Moderate | LTCG @ slab (post Apr 2023) |
| Annuity Plans (LIC, HDFC) | 5-6% | Lifetime | Low (insurer) | Annuity taxable as income |
Smart POMIS Strategies
- Joint with spouse for higher limit: Single ₹9L vs joint ₹15L — choose joint if both partners can deposit
- Auto-credit to savings + sweep: Link POMIS payout to savings account; auto-sweep into liquid fund for ~6% extra return on idle balance
- Combine with SCSS: Senior citizen can do ₹30L SCSS + ₹9L POMIS = ₹39L safe deposits with steady cash flow
- Reinvest payout in RD: Start a Post Office RD or PPF top-up using POMIS interest — builds additional corpus
- Multiple accounts for laddering: Open POMIS in different years to stagger maturities; ensures liquidity events
- Avoid premature withdrawal: 1-2% penalty makes early exit costly; plan tenure carefully before depositing
How to Open POMIS Account
- Visit any post office (Sub-Post Office or above)
- Fill Form A (POMIS Account Opening)
- Submit documents:
- Identity proof: Aadhaar, PAN, Voter ID, Driving Licence
- Address proof: Aadhaar, Voter ID, Utility bill
- 2 passport photos
- PAN mandatory if deposit ≥ ₹50,000
- Deposit by cash (up to ₹50K), cheque, or transfer from existing PO savings
- Designate nominee (Form C)
- Receive passbook with first interest payable from following month
India Post Payments Bank (IPPB) is rolling out digital POMIS via app for select customers — check IPPB website or your nearest post office.
Frequently Asked Questions
What is the maximum amount I can deposit in POMIS?
Single account: ₹9 lakh. Joint account (2-3 adults): ₹15 lakh. These limits were doubled in Budget 2023 (previously ₹4.5L and ₹9L respectively). Combined limit across multiple POMIS accounts cannot exceed these.
Is POMIS interest credited monthly automatically?
Yes — on the 1st of every month, starting from the month after deposit. Credited to your post office savings account or linked external bank account (use ECS mandate for direct bank credit).
Can NRIs invest in POMIS?
No. POMIS is restricted to resident Indians. NRIs becoming residents again can open POMIS. Existing account holders becoming NRI must close the account.
How many POMIS accounts can I open?
No limit on number of accounts, but the COMBINED deposit cannot exceed ₹9L (single) or ₹15L (joint). For example, you can open three ₹3L single accounts, but not three ₹9L accounts.
Is there TDS on POMIS interest?
No — Post Office does NOT deduct TDS on POMIS interest currently. However, the interest is fully taxable in your hands at slab rate, and you must report it under “Income from Other Sources” while filing ITR.
Can I auto-renew POMIS at maturity?
No — POMIS does not have automatic renewal. At maturity, you receive principal back. You must open a fresh account to reinvest. Plan ahead — Post Office staff don’t always remind customers of maturity dates.
What happens if I don’t withdraw monthly interest?
Unwithdrawn interest does NOT earn additional interest in POMIS itself. It sits in your linked savings account (earning savings rate ~3-4%). Best practice: ECS-transfer the payout to a liquid fund or RD for better effective returns.
Can a minor have a POMIS account?
Yes — minor aged 10+ years can have POMIS in their own name with deposit up to ₹3 lakh. Minor below 10 must have guardian-operated account. On attaining majority, the account converts to standard adult account.
Is POMIS better than a Bank FD for monthly income?
POMIS rate (7.4%) is higher than most bank FDs (6.5-7.5%) and is government-guaranteed without TDS hassles. However, POMIS has ₹9L/15L caps; banks have no upper limit (DICGC insurance covers up to ₹5L per bank). For amounts up to limits, POMIS usually wins on returns + simplicity.
Can I transfer POMIS account between post offices?
Yes — submit Form SB-10(b) at current post office; account is transferred to new post office (within India). No fee, takes 1-2 weeks. Useful if you relocate to a different city.
Is POMIS deposit eligible for any tax deduction?
No. POMIS deposit does NOT qualify for Section 80C (unlike PPF, SCSS, NSC). Interest is fully taxable. Only seniors get partial relief via 80TTB (₹50K deduction across all interest income).