TAX LIABILITY The interest earning from post office MIS is taxable under the hands of the depositor. The income so generated will be taxed as per ones marginal tax rate. There are no income tax benefits from PO-MIS plan. Read: About the new tax slabs (2020) . But to make it slightly more convenient for the depositors, under PO-MIS plan no Tax is deducted at source ( no TDS ). This increases the monthly take home income. As this scheme is also used by senior citizens, no TDS deduction helps their cause. Read: Where to invest money after retirement . DEATH BENEFIT In the event of death of the account holder, the nominee will be eligible for the death benefit. Post the death of the account holder, the due interest amount and the principal amount will be paid to the registered nominee. Read: Buying health insurance in 40 .
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In India we have an investment option called “Post Office Monthly Income Scheme (MIS)”. Among other investment options, PO-MIS can also be considered suitable for investment by retired people . But PO-MIS is not limited for retired people alone. Anyone with age above 18 years can open a PO-MIS account. An account can be open even on behalf of minors with age above 10 years. So if you are one who is interested in alternative income generation , then PO-MIS can be your choice. It is one of those super-safe investment options where the invested capital is fully protected. Moreover, it can also earn some interest. Though the offered interest rate is not high, but considering that it is a monthly income plan, and is almost risk-free, it is a good compromise. Like banks, Post Office’s are spread all over India. They are even located in such places which may not have banks. That is why, banking facility offered by Indian Post Offices are so welcomed. Let’s know more about this month