Respected All,
Interest from post office MIS Scheme is taxable or not
2 Replies
Digambar
(Senior Accountant)
(23 Points)
Replied 12 September 2011
- Interest rate of 8% per annum payable monthly.
- Maturity period is 6 years.
- Minimum investment amount is Rs.1000/- or in multiple thereof.
- Maximum amount is Rs. 3 lacs in single account and Rs. 6 lacs in a joint account.
- Account can be opened by an individual, two/three adults jointly and a minor through a guardian.
- A minor having attained 10 years of age can open an account in his/her own name directly.
-
Non-Resident Indian / HUF cannot open the Account.
Minor has a separate limit of investment of Rs. 3 lacs and the same is not clubbed with the limit of guardian. - A separate account is opened for each deposit.
- Any number of accounts can be opened subject to the maximum prescribed limit.
- Facility of automatic credit of monthly interest to saving account if accounts are at the same post office.
- Facility of premature closure of account after one year @ 3.50% discount.
- No deduction of 3.5% if account is closed on completion of three years.
- Facility of reinvestment on maturity of an account.
- Interest not with-drawan does not carry any interest.
- Maturity proceeds not drawn are eligible to saving account interest rate for a maximum period of two years.
- Account is transferable from one post office to any Post office in India free of cost.
- Nomination facility available.
- Rebate under section 80 C not admissible.
- Interest income is taxable, but no TDS
- Only scheme in Post office where monthly interest is payable.
- Most suitable scheme for senior citizens and for those who need regular monthly income.
- Deposits are exempt from Wealth Tax
CA Leanne Santos
(CA)
(39 Points)
Replied 12 September 2011
Interest from Post Office MIS Scheme is Taxable
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