Post Office Monthly Income Scheme (POMIS) Calculator

Calculate the guaranteed monthly income from your POMIS investment.

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About the POMIS Calculator

The Post Office Monthly Income Scheme (POMIS) is a government-backed savings scheme that provides investors with a fixed monthly income. It is an ideal investment for risk-averse individuals, such as retirees, who are looking for a regular and guaranteed source of income. This calculator helps you determine the exact monthly payout you will receive based on your investment amount and the applicable interest rate.

How is the Monthly Income Calculated?

The calculation for POMIS is based on simple interest, not compound interest, because the interest is paid out monthly instead of being reinvested. The annual interest is calculated on your principal amount, and this amount is then divided by 12 to arrive at your monthly income.

Monthly Income =  (Investment Amount × Annual Interest Rate) / 12

The interest rate is fixed for the entire 5-year tenure at the time you make the investment.

Frequently Asked Questions (FAQ)

What is the Post Office Monthly Income Scheme (POMIS)?

POMIS is a savings scheme offered by the India Post that allows an individual to deposit a lump sum amount and receive a guaranteed monthly income in the form of interest. The principal amount is returned to the investor at the end of the 5-year tenure.

What are the investment limits for POMIS?

The investment limits were revised in the 2023 budget. Currently, the maximum investment limits are:

  • Single Account: Up to ₹9 lakh
  • Joint Account: Up to ₹15 lakh (for up to 3 joint holders)

What is the tenure of a POMIS account?

The maturity period for a POMIS account is **5 years** from the date of opening. After maturity, you can either withdraw the principal amount or reinvest it in the scheme for another 5 years at the then-prevailing interest rate.

Is the income from POMIS taxable?

Yes, the monthly interest received from POMIS is fully taxable. It is added to your annual income under the head "Income from Other Sources" and taxed as per your applicable income tax slab. However, there is no Tax Deducted at Source (TDS) on the interest payments.

Can I close the POMIS account before 5 years?

Yes, premature closure is allowed, but with a penalty.

  • If closed between 1 and 3 years, a penalty of **2%** of the principal amount is deducted.
  • If closed between 3 and 5 years, a penalty of **1%** of the principal amount is deducted.