What is MSSC (Mahila Samman Savings Certificate) Scheme 2023..
The Mahila Samman Savings Certificate is a one-time savings scheme for women that the government introduced in Budget 2023. The scheme intends to empower women by expanding their investment engagement. It is a government-backed scheme in which women can earn a set interest rate of 7.5%.
It is a one-time small savings scheme for women created by the government with a two-year maturity period. A woman or a girl child's guardian can open this account and deposit up to Rs.2 lakh.
MSSC is a single-holder account available at any Post Office or licenced bank.
Is the Mahila Samman saving certificate tax deductible?
The programme generates taxable interest. This means that, unlike tax-saving fixed deposits, you will not be eligible for tax benefits. Interest on Mahila Samman Savings Certificates is not tax-free. TDS is calculated based on total interest income and individual tax slabs.
Key characteristics of the Mahila Samman Savings Certificate
The investment period runs from April 1, 2023 to March 31, 2025.
The minimum investment is Rs 1,000. Maximum investment: Rs 2 lakh (in one installment or all at once). Two years' tenure
Interest rate: 7.5% per year (compounded quarterly but paid at maturity)
Partial withdrawal:
After one year, a partial withdrawal of up to 40% of the balance is permitted.
Premature closure is permitted without penalty only in the event of the account holder's death or in exceptional compassionate circumstances (life-threatening disease and/or death of the guardian). Can be closed with out explanation after six months of account opening.
How do you plan to invest?
To participate in this scheme, go to your local post office with a copy of your PAN, Aadhaar, and a cheque for the deposit amount, and ask for the account opening form, which must be filled out and submitted.
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