These Fixed deposits are also at par with other investment avenues in terms of taxability of interest income. Earlier POMIS were exempt from tax under Section 80L of the Income Tax Act (ITA) but with the omission of Section 80L from ITA, interest income accrued from POMIS is added to the taxable income of an investor similar to the interest income earned from a FD.

A fixed deposit plan offers all the benefits which other instruments in the portfolio of a retiree would offer. Hence while making a prudent investment choice for retirees, FD monthly income plan will enable financial stability over the long-term and guarantee one to mature his money as he matures with age.