Budget 2023- Increase in Monthly Income Scheme (MIS) Deposit Limit, Check Detail

The Finance Minister presented the budget FY 2023-24 today, stating it to be the first budget in Amrit Kaal. She announced a major change in the limit of the senior citizen saving scheme and monthly income account scheme. Check the new limit for monthly income account scheme deposits.

What is a Monthly Income Account Scheme?

The Post Office Monthly Income Scheme (POMIS) is a small savings scheme supported by the Indian government that allows investors to set aside (save) a set amount each month. Following that, interest at the applicable rate is added to this investment and paid out monthly to the depositors.

New limit for Monthly Income Account Scheme Deposit?

Finance Minister Nirmala Sitharaman announced an increase in the maximum deposit limit for the Monthly Income Account Scheme from Rs 4.5 lakh to Rs 9 lakh for single accounts and for joint accounts the maximum limits increased from Rs 9 lakh to Rs 15 lakh.

Features of POMIS

• For the first five years after opening a Monthly Income Scheme account at a post office, you won't be able to withdraw any funds.
• A POMIS minor account can be opened in the child's name. To participate in the Post Office Monthly Income Scheme, minors must be at least ten years old. He or she may withdraw the funds after 18 years.
• The ability to withdraw your monthly investment interest via automatic transfer to your savings account via PDCs or ECS. You can transfer the interest from a POMIS account at a CBS Post Office to any other CBS-centric savings account.
• If you withdraw your investment corpus prior to the expiration of the lock-in period, you will be penalised based on the time of redemption.
• As an investment, any amount in multiples of Rs. 100 is permissible.
• The interest amount is not subject to TDS, but it also does not qualify for Section 80C tax breaks.

Eligibility

• Accounts can be opened by Indian citizens.
• Non-resident Indians are not covered by this system.
• Anyone over the age of 18 is eligible to open an account.
• When a minor reaches the age of majority, he must apply for conversion of the account in his name.

Latest Interest Rate

Interest rates on the Post Office Monthly Income Scheme are 7.1% per annum, payable monthly.