Mahila Samman Saving Certificate is an initiative created to promote saving and investment among women and girls. Launched in Budget 2023, the scheme offers a one-time opportunity and is available for two years from April 2023 to March 2025.
Mahila Samman Saving Certificate is an initiative created to promote saving and investment among women and girls. Launched in Budget 2023 , the scheme offers a one-time opportunity and is available for two years from April 2023 to March 2025. Any Indian woman, irrespective of age, gets the opportunity to open an account and invest under the scheme. Also a legal or natural guardian, including male guardians, can open an account for a minor girl. This provides an opportunity for your daughter or any other young girl under your tutelage to invest in financial products.
This much interest is earned
Under the scheme, investment on Mahila Samman Saving Certificate is exempted under Income Tax Act 80C. Under the scheme, tax will have to be paid on the interest earned on it. This means that unlike tax saving fixed deposits, you do not get tax benefits on its interest. TDS is deducted on interest income. This scheme offers an interest of 7.5 per cent per annum, which comes into the account every quarter but the interest and the entire principal is available on maturity.
An investment of Rs 2 lakh will generate income in 2 years.
If you invest Rs 2 lakh in Mahila Samman Savings Certificate for 2 years, you will get Rs 2.32 lakh on maturity. It works just like FD. You go to your nearest post office and submit the form to open an account. Apart from this, you will have to provide KYC documents i.e. Aadhaar and PAN card. You will also have to give a pay-in-slip along with the cheque. Mahila Samman Certificates are also available in many banks of the country.
When can MSSC be prematurely closed?
It can be closed on the death of the account holder. In case of emergency such as life threatening death of the account holder. However, in this case you will have to provide documents. Six months after account opening without any reason. However, then you will get interest reduced by 2 percent i.e. 5.5 percent only.
Maximum investment
The minimum investment amount in MSSC is Rs 1000 and in multiples of 100. Its maximum limit is Rs 2 lakh per account. If you already have an account and want to open another account, there should be a gap of at least 3 months. 40 percent of the money can be withdrawn after 1 year of account opening.
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