Earn 7.4% interest on Post Office Monthly Income Scheme; do you get tax benefits for investing in POMIS?

economictimes.indiatimes.com:

Post Office Monthly Income Scheme (POMIS). Under the POMIS, the investor will get interest payments every month. The interest rate for this program is revised by the government every quarter. According to news reports, as of early February, collection from POMIS rose to nearly Rs 20,000 crore against Rs 5,000 crore in FY23.

Here is a look at important features of the Post Office Monthly Income Scheme as per the India Post website.

Who can invest in POMIS

(i) a single adult

(ii) Joint Account (up to 3 adults) (Joint A or Joint B))
(iii) a guardian on behalf of minor/ person of unsound mind
(iv) a minor above 10 years in his own name.

What is the minimum amount for opening of account and maximum balance that can be retained?

• In multiples of Rs 1,000.
• Maximum investment limit is Rs 9 lakh in a single account and Rs 15 lakh in a joint account.
• An individual can invest a maximum Rs 9 lakh in MIS (including his share in joint accounts)
• For the calculation of the share of an individual in a joint account, each joint holder has equal share in each joint account.
• Deposits/shares in all MIS accounts opened by an individual shall not exceed Rs. 9 lakh.
• Limit for account opened on behalf of a minor as guardian shall be separate.

What is the interest rate payable and periodicity of POMIS?

• For the January to March 2024 quarter, the POMIS interest rate has been set at 7.4% per annum payable monthly.
• Interest shall be payable on completion of a month from the date of opening and so on till maturity.
• If the interest payable