The Union Budget 2023, as presented by Finance Minister Nirmala Sitharaman, has introduced major changes to two popular post office investment schemes in India - Senior Citizen Savings Scheme (SCSS) and Post Office Monthly Income Scheme (POMIS). The deposit limit of both these schemes has been increased to allow for higher tax-free investments.
Revised Post Office Monthly Income Scheme 2023
In the case of the Post Office Monthly Income Scheme (POMIS), the new deposit limit for single account holders has been raised from ₹4.5 lakh to ₹9 lakh. As for joint account holders, the limit has been increased from ₹9 lakh to ₹15 lakh. The minimum deposit required to open a POMIS account remains the same at ₹1000. The interest payable on this scheme is on a monthly basis and is calculated from the date of opening of the account. However, if the interest is not claimed or withdrawn by the account holder, it will not earn any additional interest. Pre-mature withdrawal is permitted in POMIS, but a 2% deduction from the principal amount is applicable if the account is closed before 3 years. Moreover, a 1% deduction will be applicable if the account is closed after 3 years but before 5 years from the date of opening the account.
Revised The Senior Citizens Saving Scheme (SCSS) 2023
The deposit limit for the Senior Citizens Saving Scheme (SCSS) has also doubled from ₹15 lakh to ₹30 lakh to allow for higher investments for senior citizens. Talking about the POMIS and SCSS, FM Nirmala Sitharaman said,
‘The maximum deposit limit for Monthly Income Account Scheme will be enhanced from ₹4.5 lakh to ₹9 lakh for single account and from ₹9 lakh to ₹15 lakh for joint account…The maximum deposit limit for Senior Citizen Savings Scheme will be enhanced from Rs 15 lakh to Rs 30 lakh'-FM Nirmala Sitharaman
New Savings Scheme For Women
In her long speech about the budget, the Finance Minister also announced a new small savings scheme, 'Azadi Ka Amrit Mahotsav Mahila Samman Bachat Patra' for women. This scheme offers a deposit facility of up to ₹2 lakh for a tenor of 2 years with a fixed interest rate of 7.5% and a partial withdrawal option.
The changes announced in the Union Budget 2023 have given a much-needed boost to two popular post office investment schemes in India - POMIS and SCSS. Additionally, the establishment of an integrated IT portal for reclaiming unclaimed shares and dividends will make the process much easier for investors.
Also Read: Budget 2023: Old Income Tax Slabs vs New Income Tax Slabs
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