Is MIS interest tax free?

No. It is fully taxable at your slab. No TDS is deducted, which means the responsibility to declare it is entirely yours.

Finance & Loansgovt schemesIndia only

Post Office MIS Calculator

Post Office Monthly Income Scheme payouts, with what reinvesting them would build. MIS does not compound, so the difference between spending and reinvesting the payout is substantial over five years.

Also called: post office monthly income scheme, mis calculator.

Monthly income

₹5,550

₹5,550 a month on a deposit of 9,00,000 at 7.4%. Over the five year term that is ₹3,33,000. Reinvesting each payout at 7% would build ₹3,97,341 instead. Small savings rates are revised quarterly by the government. Check the current quarter rate before relying on this.

Annual income

₹66,600

Interest over five years

₹3,33,000

If each payout is reinvested

₹3,97,341

Gain from reinvesting

₹64,341

Returned at maturity

₹9,00,000

On the rate

Small savings rates are revised quarterly by the government. Check the current quarter rate before relying on this.

How this is calculated

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

MIS pays simple monthly interest and returns the principal at the end of five years. Since nothing compounds inside the scheme, the stated rate is exactly what you get if you spend the payouts. Reinvesting each payout turns it into an annuity that compounds, which over five years adds meaningfully. The comparison is shown because MIS is often chosen by people who do not need the monthly income and let it accumulate in a savings account earning far less.

monthly income is simple interest, and the principal returns at maturity

P: Deposit

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

nine lakh at 7.4 percent

Amount deposited: ₹9,00,000
MIS rate: 7.4%
If you reinvest the payout, return: 7%

Monthly income₹5,550

9,00,000 x 7.4% / 12

Open this example

a zero reinvestment return is a straight sum

Amount deposited: ₹9,00,000
MIS rate: 7.4%
If you reinvest the payout, return: 0%

Monthly income₹5,550

boundary

Open this example

Method and limits

What it assumes

Monthly payouts reinvested at the start of each month.

What it deliberately does not model

Deposit limits apply per individual and per joint account.
Interest is fully taxable and no TDS is deducted, so it must be declared.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Is MIS interest tax free?: No. It is fully taxable at your slab. No TDS is deducted, which means the responsibility to declare it is entirely yours.