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Post Office MIS calculator
The Monthly Income Scheme turns a lump sum into a fixed monthly payment for five years, with government backing.
How the scheme works
Deposit up to ₹9 lakh in a single account or ₹15 lakh in a joint account. Interest at 7.4% a year is paid every month into your post office savings account. After five years the deposit is returned. ₹9 lakh pays ₹5,550 a month.
Monthly income = Deposit × rate ÷ 12
Questions
Is the income taxable?
Yes, at your slab rate. There is no Section 80C benefit on the deposit.
Can I reinvest the monthly income?
Yes. A common approach is to route it into a post office recurring deposit, which compounds the income.
Can I withdraw early?
After one year, with a deduction of 2% of the deposit before three years and 1% after.