Post Office Monthly Income Scheme which is supported by the Government of India. According to this scheme, Investor's is given Simple Interest from a fixed rate on their Invested Amount in the scheme. This scheme is provided by Post Office Department, whose main objective is to get a Regular Monthly Income from Investors. There is Regular Monthly Income Receive of Investors without any interruption and hassle in this scheme. That's why this scheme is very popular too.
In this type of scheme, most elderly people, retired people like to invest money so that they get money every few months and spend their home.
Benefits of Monthly Income Scheme
- There is no Wealth Tax Charge of any kind on Invested Amount. Exempt from the Invested Amount, Wealth Tax.
- Through this scheme, investors are guaranteed that they will receive a Monthly Return from a Fixed Interest Rate on the Invested Amount.
- Non Resident of India (NRI) and Hindi Undivided Family (HUF) are not Eligible to invest in the Monthly Income Scheme.
- Monthly Income Scheme Account, Cash Amount can be opened by Pay or by Cheque.
- In this scheme, your capital remains safe and secure.
- Tax Deducted At Source (TDS) is not implemented in this scheme but whatever interest you receive from this scheme is taxable.
- Any Amount Investments you make in this scheme are not eligible for the Tax Rebate under Section 80C of the Income Tax Act, 1961.
- Return is good on Invested Amount.
- Investing in this scheme is advisable for Retired Persons and Senior Citizen Persons.
- Those people who do not want to invest in Risky place like Mutual Funds, Equity Funds, Debt Funds, but want to Risk Free Investment, it is better for them to invest in this scheme.
- There is also a nomination facility in this scheme, which can take the facility of Nomination on your account whenever you want to open the Monthly Income Scheme Account Open or after the account is open.
- The Monthly Income Scheme Account can also open an Individual and two or three Adults Persons can also open the Joint Monthly Income Scheme Account and even the Minor Person can open and open their Guardian Through This Account. .
- If both the Post Office Saving Account and the Monthly Income Scheme Scheme are in the same branch of the Post Office, then you are also offered the Auto Credit Facility, which allows you to credit the Interest Amount you get per month in the Post Office Saving Account directly.
- You can also take advantage of Reinvestment if Amount is mature.
- Monthly Income Scheme Account can be transferred from one Post Office to another Post Office.
- The Individual Monthly Income Scheme Account can be converted into the Joint Monthly Income Scheme Account and the Joint Monthly Income Scheme Account in the Individual Monthly Income Scheme Account.
Important things related to Monthly Income Scheme
- Whatever Amount Investments you invest in the Monthly Income Scheme, Maturity Period is 5 Years. This means that you have to invest funds for 5 years in this scheme and if you withdraw the Invested Amount before 5 years, then you are taken as a Charges Penalty by Post Office at Invested Amount.
- After 1 year and 3 years before Invested Amount Withdraw, then 2% Deduction is taken as a Penalty on Total Invested Amount.
- After 3 years but before 5 years of invested Amount Withdraw, then 1% Deduction is taken as Penalty on Total Invested Amount.
- In this scheme, you can invest up to at least 1500 rupees and the limit of maximum Amount is fixed on the following basis.
- If you have a Single Monthly Income Scheme Account, then Amount can be invested up to a maximum of 4.5 lakhs on Single Account.
- If two Adults Person has jointly organized the Joint Monthly Income Scheme Account in the Post Office, then Jointly, this scheme can be invested upto 9,00,000 (4, 50,000 + 4,50,000), Maximum Amount.
- Occasionally the interest rate of the Monthly Income Scheme increases and sometimes decreases, in such a situation, you will be given interest at the same rate on which day you invested money for 5 years in this scheme. The new interest rate will only apply to those Individual or Joint Account that invests money in this scheme on or after the new interest rate is applied.
- If you have not done interest withdraw, you will not be given any additional interest on that interest. This means that simple interest is given only on the original Invested Amount in this scheme, not Compound Interest.
- Nowadays, the Post Office has also increased towards Technology and if you have a Saving Account in the Post Office, then ECS's interest is transferred directly into the Saving Account of your Post Office.
- There is no freedom of choice for fixed deposit in this scheme. Meaning you can not invest money in this scheme for as long as you want, investing for as long as the government rules and regulations
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