CBDT has cleared the doubts arising regarding TDS deduction on the interest of Mahila Samman Savings Certificate. The institute has said that no TDS will have to be paid on the interest. However, tax will be deducted on the interest as per the tax slab.
New Delhi. TDS will not be deducted on the interest received from Mahila Samman Bachat Patra, a savings scheme launched for women. Whatever interest will be received on this, the account holder will have to pay tax on that income according to the tax slab. The Central Board of Direct Taxes (CBDT) on May 16 notified the Tax Deducted at Source (TDS) provision for the Post Office Savings Scheme. Under this, an account can be opened in the name of a girl or a woman.
Mahila Samman Bachat Patra Yojana was started in the current financial year. A maximum of two lakh rupees can be deposited in this. 7.5 percent interest will be given annually on this. The deposit will mature in two years. Neeraj Aggarwal, partner, Nangia Andersen India, said that in the CBDT notification, it has been clarified that TDS will not be deducted if the interest received on Mahila Samman Savings Certificate does not exceed Rs 40,000 in a financial year.
How much interest is being made now
Agarwal said, “Under the scheme, 15,000 interest will be made in a year on a deposit of two lakh rupees at 7.5 percent interest. In two years it will be Rs.32,000. In such a situation, it can be said that since the interest in any one financial year is less than Rs 40,000, TDS will not be deducted.
What is this scheme
Mahila Samman Bachat Patra Yojana has been started with the aim of encouraging women to save and giving more interest. This scheme was started from 1 April 2023. Only Indian women will get the benefit of this scheme. Women of any age can get the benefit of Mahila Samman Savings Letter Scheme. You can open this account in any post office in India. For this, Aadhaar card, PAN card and photo are necessary documents.
For how many years can be deposited
Money can be deposited for 2 years in Mahila Samman Bachat Patra Yojana. In this, you get the interest of 2 years at the same time on maturity. On investing a maximum of Rs 2 lakh at an interest rate of 7.5 per cent, an interest of Rs 320000 will be received after 2 years. That is, you will get Rs 2.32 lakh on maturity. There must be a gap of at least 3 months in each installment.
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