Mahila Samman Savings Certificate 2023: What is It, Eligibility & Interest Rates
What is Mahila Samman Savings Certificate?
The Mahila Samman Savings Certificate, 2023, will be offered in Post Offices on April 1, 2023, at a rate of 7.5% p.a. In her Budget Speech 2023-24, Union Finance Minister Smt. Nirmala Sitharaman unveiled the Mahila Samman Saving Certificate, a new modest savings plan for women and girls. To celebrate the Azadi ka Amrit Mahotsav, the Mahila Samman Savings Certificate scheme was announced. The Mahila Samman Savings Certificate is a one-time initiative that runs from April 2023 to March 2025. It would provide a max deposit facility of Rs.2 lakh in the name of girl for a period of two years at a set interest .
How Do I Get a Mahila Samman Savings Certificate?
Following are the procedures:
- The ‘Application for Purchasing the Certificate’ can be downloaded from the official Indian Post website. You may also acquire the form at your local Post Office.
- Fill up the ‘To The Postmaster’ area with the Post Office address.
- Fill out the account type, payment information, and personal information
- Your name should be entered in the area given, along with a note that the account is a “Mahila Samman Savings Certificate.”
- Fill in the declaration and nomination information.
- Make a cash or check deposit at the Post Office.
- Get the certificate that will serve as proof.
Document required for Mahila Samman Savings Certificate Account opening
- Application form
- KYC documents, such as an Aadhaar card, Voter ID, driving license and PAN card should be kept , as its very important.
- KYC form for new account holders
Characteristics of the Mahila Samman Savings Certificate
It is only possible to open a Mahila Samman Savings Certificate under a girl or woman’s name. A Mahila Samman Saving Certificate programme can be opened by a woman or the adult responsible for a minor female child.
Maximum and lowest investment restrictions
No more deposits are allowed after the first deposit of Rs 1000, which can be made in any number in multiples of Rs 100. The plan allows for a maximum investment of Rs 2 lakh.
Deposits placed under this plan will earn interest at a 7.5% yearly rate. The account will be credited with every 3 months compounded interest. On March 31, 2023, the government announced that “the interest payable to the account holder in respect of any account opened or deposit made which is not in consonance with the provisions of this Withdrawal process
By completing a Form-3 application after the first year from the date the account was opened but before the account matures, the account holder may withdraw up to 40% of the balance.
TDS Exemption for Income from Interest
The official announcement and post office schemes website are quiet on the taxes structure, therefore it is safe to infer that no preferential tax treatment is available for this. This means that no tax credit under Section 80C of the Income Tax Act may be available. Furthermore, interest generated will be added to taxable income on an annual basis (on an accrual basis) and taxed at the corresponding slab rate. According to Neeraj Agarwala, Partner at Nangia Andersen India, the CBDT regulation explains that TDS on interest received on the Mahila Samman Saving Certificate (MSSC) is not chargeable if the interest does not exceed 40,000 in a fiscal year.
“At 7.5% interest, the MSSC scheme will return 15,000 in a year and 32,000 in two years.” “There will be no TDS because the interest accrued in a fiscal year will be less than 40,000,” Agarwala explained.
Premature account closure
Except in the instances listed below, namely: “on the death of the account holder,” the account may not be terminated before maturity.
The account may be prematurely closed after thorough documentation, by order, and for reasons that will be documented in writing when the post office or bank in question determines.