What is POMIS?
The Post Office Monthly Income Scheme (POMIS) is a sovereign-backed investment designed for investors (particularly retirees) seeking a guaranteed, regular monthly income without exposing their capital to market risks. It has a lock-in period of 5 years.
How POMIS Payouts Work
Unlike FDs or NSCs where interest is compounded, POMIS pays out simple interest directly into your post office savings account every month. At the end of the 5-year term, your original principal is returned to you.
The maximum you can invest in POMIS is ₹9 Lakh for an individual account and ₹15 Lakh for a joint account.
The monthly interest you receive from POMIS is fully taxable. It is added to your total income and taxed according to your applicable slab rate. Furthermore, POMIS deposits do not qualify for any Section 80C tax deductions.