POMIS Form 15G / 15H — Is TDS Applicable on POMIS?
Clear answer: Post Office doesn't deduct TDS on POMIS — but interest is still fully taxable
⚡ Key Takeaways
- No TDS is deducted on POMIS interest — Post Office is not a bank under Section 194A
- Therefore Form 15G / 15H are NOT required for POMIS — there is no TDS to prevent
- However, POMIS interest is fully taxable — must be declared in ITR as Other Sources
- Form 15H is applicable to POSA (Post Office Savings Account) savings interest above ₹10,000
- Many investors confuse 'no TDS' with 'no tax' — this is wrong and can lead to IT notices
- Advance tax applies if total tax liability exceeds ₹10,000 per year
TDS on POMIS — The Definitive Answer
Post Office does NOT deduct TDS on POMIS (MIS) interest. Here's why:
- Section 194A of the Income Tax Act requires TDS on interest paid by "banking companies" and cooperative banks
- India Post (Department of Posts) is not classified as a banking company under this section
- Therefore, the TDS obligation under Section 194A does not apply to Post Office MIS interest
- You receive the full monthly payout without any deduction — e.g., full ₹5,550/month on ₹9L
📘 TDS comparison: POMIS vs Bank FD vs SCSS
| POMIS interest (Post Office) | No TDS deducted | Self-declare in ITR |
| Bank FD interest | TDS at 10% if interest > ₹40K/yr (₹50K seniors) | Bank deducts and reports |
| SCSS interest (Post Office) | No TDS if interest ≤ ₹1L/yr (for 60+) | Above ₹1L: TDS applies |
| Post Office Savings Account | No TDS up to ₹10K interest/yr | Above ₹10K: self-declare |
When 15G / 15H ARE Relevant at Post Office
While not needed for POMIS, Form 15G/15H may be relevant for other Post Office products:
| Product | TDS? | 15G/15H Applicable? |
|---|---|---|
| POMIS interest | ❌ No TDS | ❌ Not required |
| SCSS interest (above ₹1L/yr, senior) | ✅ TDS applicable | ✅ 15H applicable for seniors |
| Post Office TD (Term Deposit) | ✅ TDS if > ₹40K/yr | ✅ 15G/15H applicable |
| POSA savings interest (>₹10K) | Reporting applies | Optional — may help |
| NSC interest | Self-declared — no TDS | Not required |
So if you have both POMIS and an SCSS account, you may need Form 15H for the SCSS interest (if above ₹1L/year) but not for POMIS interest.
Your Tax Obligation Despite No TDS
No TDS ≠ No Tax. This is the most common POMIS tax mistake. You must:
- Declare POMIS interest in ITR every year under Schedule OS (Other Sources)
- Add total annual POMIS interest to your gross income and compute tax at your slab rate
- Pay advance tax quarterly if your total tax liability exceeds ₹10,000 for the year
- Keep your POMIS passbook and POSA statement as records — the IT department can ask for proof
For a ₹9L POMIS at 7.4%: annual interest = ₹66,600. At 20% tax slab, annual tax = ₹13,320 — well above ₹10,000, triggering advance tax obligation.
Reporting POMIS Income in ITR — Step by Step
| Step | Action |
|---|---|
| 1 | Total your POMIS interest received during the financial year (April–March) |
| 2 | In ITR-1 or ITR-2: go to Schedule OS (Other Sources) |
| 3 | Enter POMIS interest under "Interest income other than savings account" |
| 4 | No TDS to claim — leave TDS field blank for POMIS |
| 5 | Compute total tax — if due tax > ₹10K, check advance tax compliance |
Common Tax Mistakes POMIS Investors Make
| Mistake | Correct Position |
|---|---|
| "No TDS means no tax on POMIS" | Wrong. No TDS = no automatic deduction. Tax is still due — self-assess. |
| "I submitted 15H so I'm exempt" | 15H is not required for POMIS. It applies to bank FDs and SCSS (above limits). Not POMIS. |
| Not filing advance tax | If total tax > ₹10,000/yr, advance tax is mandatory. 1% monthly interest for non-compliance. |
| Not declaring in ITR at all | Income Tax Dept receives POSA credits via AIS. Under-reporting can trigger scrutiny. |
| Assuming POMIS is like PPF (tax-free) | PPF is tax-free. POMIS is fully taxable — different schemes entirely. |
Senior Citizens and POMIS Tax
| Senior Citizen Tax Aspect | POMIS |
|---|---|
| Basic exemption (old regime) | ₹3L (60–79 yrs) / ₹5L (80+) — POMIS income within limit is tax-free |
| 80TTB deduction | ❌ Not applicable — 80TTB covers only bank/POSA savings interest, not MIS |
| TDS on POMIS | ❌ No TDS — same for all ages |
| Form 15H for POMIS | ❌ Not needed — no TDS to prevent |
| Net benefit for low-income senior | If total income below basic exemption (₹3L / ₹5L) → zero tax on POMIS interest |
🔗 Also read
✅ Advantages
- No TDS deducted — full monthly income in hand without any withholding
- No 15G/15H paperwork — one less administrative task
- Simple self-assessment — declare in ITR annually
⚠️ Limitations
- No TDS means discipline needed — must self-set aside tax each month
- Advance tax required if annual POMIS tax > ₹10,000 — quarterly instalments mandatory
- AIS tracks POSA credits — under-reporting POMIS income is easily detectable
✅ This applies to you if
- Investors confused whether they need 15G/15H for POMIS — this page clarifies they don't
- Those receiving IT notices for under-reporting POMIS income
- Anyone holding both POMIS and SCSS who wants to understand which needs 15H
⚠️ Think twice if
- Those expecting to avoid all tax via 15H — impossible for POMIS as no TDS exists to prevent
- High-income investors who know they owe tax — they should simply file ITR correctly
📋 Disclaimer & Source: All POMIS data on this page is sourced from India Post / Ministry of Finance, Govt. of India and India Post official guidelines. Interest rate of 7.4% p.a. is effective Q1 FY 2026-27 (April 1, 2026). Last reviewed: April 15, 2026. This page is for informational purposes only and does not constitute financial advice. · Full Disclaimer
Frequently Asked Questions
No — Form 15G and 15H are not required for POMIS. Post Office does not deduct TDS on POMIS interest because it is not classified as a bank under Section 194A. There is no TDS to prevent, so the forms serve no purpose for POMIS.
No. Post Office does not deduct TDS on POMIS interest. You receive the full monthly payout (e.g., ₹5,550/month on ₹9L at 7.4%). However, this doesn't mean the interest is tax-free — you must declare it in your ITR.
No — this is a common misconception. POMIS interest is fully taxable as Income from Other Sources at your applicable slab rate. 'No TDS' simply means no automatic deduction at source. Your tax obligation remains — declare in ITR and pay advance tax if applicable.
Form 15H is applicable for SCSS interest (if annual interest exceeds ₹1 lakh for senior citizens) and for Post Office Term Deposit (TD) interest (if above ₹40,000/year general / ₹50,000 senior). It is NOT required for POMIS since no TDS applies.
Yes — your Post Office Savings Account (POSA) credits are visible in your Annual Information Statement (AIS) on the Income Tax portal. The IT department can correlate income. Under-reporting POMIS income can lead to scrutiny notices.