Deep Analysis: Post Office Monthly Income Scheme (POMIS)
The POMIS is a highly secure, sovereign-backed investment scheme designed specifically to provide a steady, reliable stream of passive income. It is the preferred parking vehicle for retirees who require monthly liquidity without risking their principal capital.
2026 Limits and Algorithms
Recent fiscal revisions have drastically increased the deposit capacities to combat inflation. An individual can now deposit a maximum of ₹9,00,000 in a single account, while a joint account can hold up to ₹15,000,000. The lock-in period is strictly 5 years. The current interest rate of 7.4% p.a. is calculated annually but disbursed monthly directly into your linked savings account.
Taxation Rules
Unlike the PPF or SSY, the Post Office MIS does not offer Section 80C deductions on the principal amount. Furthermore, the monthly interest you receive is fully taxable under your respective income tax slab. However, importantly, there is no TDS (Tax Deducted at Source) cut by the post office on these payouts.