Home News Business Relief to those investing in Mahila Samman Savings Certificate, TDS will not have to be paid on interest income

Relief to those investing in Mahila Samman Savings Certificate, TDS will not have to be paid on interest income

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Relief to those investing in Mahila Samman Savings Certificate, TDS will not have to be paid on interest income

Mahila Samman Saving Certificate: No TDS will have to be paid on Mahila Samman Saving Certificate Scheme, a special savings scheme launched for women from April 1, 2023. Rather, the income from interest on investing in this scheme will be added to the income of the account holder and tax will have to be paid according to the tax slab. The Central Board of Direct Taxes (CBDT) has issued a notification in this regard.

According to the notification of CBDT, if the interest received on investment in Mahila Samman Savings Certificate does not exceed Rs 40,000 per annum, then TDS will not have to be paid on it. In fact, according to the interest of 7.5 per cent per annum, the maximum investment of up to Rs 2 lakh will get interest of Rs 15,000 in the first year and Rs 32,000 in the second year. In this case, the rule of TDS is not applicable as the interest income is less than the limit of Rs 40,000 per annum.

It is also important for you to know that the account holder will not get any tax benefit on investing in Mahila Samman Savings Certificate. There is no provision of tax exemption on investment under 80C in Income Tax X 1961.

Finance Minister Nirmala Sitharaman had announced the launch of Mahila Samman Saving Certificate Scheme in the budget presented this year, which has been launched from April 1, 2023. According to the plan, women will get 7.5 percent interest on this scheme with a two-year deposit. It is clear from the name that only women can open accounts under Mahila Samman Saving Certificate Scheme. Or guardians can open accounts in the name of a minor girl. An account can be opened in the name of a woman or a minor girl in this scheme till March 31, 2025. The maximum deposit can be made from at least Rs 1,000 to Rs 2 lakh in the account of Mahila Samman Saving Certificate Scheme. 7.5 percent interest annually will be given to the investors of the scheme and the interest amount will be transferred to the account after every quarter.

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After the maturity of the scheme after two years, the amount will be given to the account holder after filling the Form-2 application. After the completion of one year of the scheme period, the account holder will have the option to withdraw 40 percent of the amount. If the account holder is a minor, then the guardian can withdraw the amount after maturity after filling Form-3.

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