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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