Post Office MIS Calculator

Yes. POMIS interest is fully taxable as Income from Other Sources at your applicable income-tax slab. There is no Section 80C benefit on the principal. The Post Office does not deduct TDS on the interest, but you are still required to declare it in your ITR. Senior citizens can claim a Section 80TTB deduction of up to ₹50,000 per year against interest income from all small-savings and bank deposits combined.

Premature withdrawal is not allowed in the first year. Between 1 and 3 years a 2% penalty on the principal is deducted, and between 3 and 5 years a 1% penalty on the principal is deducted. At maturity (5 years) the full principal is returned. If you do not withdraw or reinvest at maturity, the deposit earns only the prevailing Post Office Savings Account rate (currently 4% p.a.) until you act.

Both are small-savings schemes with regular interest payouts. POMIS is open to any adult, has a 5-year tenure, pays interest monthly, and currently earns 7.4% p.a. SCSS (Senior Citizens Savings Scheme) is open only to those aged 60+ (55+ for retired/VRS/defence personnel under conditions), has a 5-year tenure extendable by 3 more, pays interest quarterly, currently earns a higher 8.2% p.a., and qualifies for a Section 80C deduction up to ₹1.5 lakh. If you are eligible for SCSS it usually gives a better post-tax return; POMIS suits younger investors and joint-account holders who want simple monthly income.

Yes — you can hold multiple POMIS accounts at one or more post offices, but the combined balance across all your accounts (your share in joint accounts plus any single-holder accounts) cannot exceed ₹9 lakh for single accounts and ₹15 lakh for joint accounts. Joint accounts may have up to 3 holders, and each holder is considered to have an equal share for the purpose of the cap. Minor accounts opened by a guardian also count toward the guardian's overall limit.