Mahila Samman Savings Certificate: If you are planning to invest in Mahila Samman Savings Certificate, then know its features and disadvantages. Mahila Samman Savings Certificate is a small savings scheme exclusively for women investors. The scheme was introduced during Budget 2023
Mahila Samman Savings Certificate: If you are planning to invest in Mahila Samman Savings Certificate, then know its features and disadvantages. Mahila Samman Savings Certificate is a small savings scheme exclusively for women investors. This scheme was introduced during Budget 2023. This is a one-time scheme available for two years from April 2023 to March 2025. The interest received on Mahila Samman Saving Certificate will be taxable. The income i.e. interest on this is not tax free. You will have to pay tax on its interest. Now Mahila Samman Saving Certificate is available in all the post offices of the country.
Who can invest in Mahila Samman Savings Certificate
- It can be used by any woman for investment for herself or on behalf of a minor girl through her guardian. The husband can also invest in this scheme for his wife.
- Is there tax on the interest received on Mahila Samman Certificate or is there exemption?
- 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.
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.
Minimum and 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.
Interest
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.
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