The Post Office Monthly Income Scheme (POMIS) is a government-backed savings plan offered by India Post that provides individuals with a fixed monthly income. It is a popular low-risk investment option, especially for retirees, homemakers, and conservative investors seeking a steady return. Under this scheme, a lump sum amount is deposited for a tenure of 5 years, and interest is paid out monthly at a predetermined rate.
POMIS accounts can be opened individually or jointly, and the maximum investment limit is ₹9 lakh for single holders and ₹15 lakh for joint accounts (limits may change as per government notifications). The interest earned is taxable, but there is no TDS (Tax Deducted at Source) deducted by the post office, allowing the investor to manage taxes as per their income slab.
This scheme is relevant for small business owners or first-time entrepreneurs who wish to park surplus funds in a safe instrument that generates a regular monthly income. It can serve as a secondary income stream or help with managing personal cash flows while navigating the early stages of business operations. Though it does not offer tax deductions under Section 80C, its assured returns and capital protection make it an attractive part of a diversified financial plan.
To explore more compliant and effective ways of managing your income and taxes, visit FinTax24’s income tax solutions.
POMIS does not require any active management or market monitoring, making it a convenient and stable financial tool, especially for risk-averse investors.