Important Keyword: Certificate, MSSC, Post Office.
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Mahila Samman Savings Certificate
Encouraging savings and investments among women is vital for the economic growth of our country. To boost financial independence for women, the Indian government has launched several initiatives. One notable scheme is the Mahila Samman Savings Certificate. This scheme allows women and girls to deposit up to INR 2 lakh in their own names. It offers a fixed interest rate of 7.5% over a period of 2 years and also includes an option for partial withdrawal.
Mahila Samman Saving Scheme
The Mahila Samman Saving Scheme is a secure, low-risk savings initiative introduced by the Indian government specifically for women and girls. Launched on April 1, 2023, this scheme is available for a limited period of two years. Individuals can open an account under this scheme until March 31, 2025. It offers a fixed annual interest rate of 7.5%, which is compounded quarterly, making the effective interest rate approximately 7.7%. Interest is credited quarterly and paid out when the account is closed.
Features of Mahila Samman Savings Certificate
Below are the features of the Mahila Samman Savings Certificate, 2023:
| Features | Particulars |
| Eligibility Criteria | An application to open the account can be made by: 1) by a woman for herself; or 2) by the guardian(male/female) on behalf of a minor girl. An account opened under this Scheme shall be a single-holder type account. |
| Limit of Deposit | 1) An individual can open any number of accounts under the scheme. 2) Individuals can deposit a minimum of INR 1,000 and any sum in multiples of INR 100. 3) An individual can deposit a maximum total of INR 2 lakh cumulatively in all the accounts. 4) An individual however must maintain a minimum time gap of 3 months between opening an existing account and opening another account. |
| Interest | 1) The deposits will yield an interest rate of 7.5 per cent per annum, compounded quarterly. Thereby producing an effective interest rate of approximately 7.7 per cent. 2) The scheme will credit the interest quarterly and will pay it at the time of the account maturity. |
| Maturity | 1) The maturity period of this savings scheme is 2 years from the date of account opening. 2) The account holder will receive the eligible amount upon maturity after submitting Form-2. |
| Withdrawal from account | 1) The maturity period of this savings scheme is 2 years from the date of account opening. 2) The account holder will receive the eligible amount upon maturity after submitting Form 2. |
Premature Closure of Account
An individual cannot close the account before it matures except under specific circumstances:
- On the death of the account holder: In this situation, interest will be calculated on the principal amount up to the date of death.
- In exceptional compassionate cases:
- If the guardian of the account holder passes away, with the submission of relevant documents.
- If the account holder is diagnosed with a life-threatening disease.
- After six months of opening the account without any specific reason: However, in this case, the interest rate will be reduced to 5.5%.
Tax Benefits
The Central Board of Direct Taxes (CBDT) has specified that Tax Deducted at Source (TDS) will apply to the Mahila Samman Savings Certificate Scheme. However, according to Section 194A of the Income Tax Act, TDS is only applicable when the interest earned from post office savings schemes in a financial year exceeds Rs. 40,000 (or Rs. 50,000 for senior citizens). Given that the maximum interest amount for a Rs. 2 lakh investment in this scheme is Rs. 32,044, TDS is not deductible under this scheme.
How to Open a Mahila Samman Savings Scheme Account
Opening a Mahila Samman Savings Certificate
You can open a Mahila Samman Savings Certificate at post offices and qualified scheduled banks. Here’s how:
Process to Open Mahila Samman Savings Certificate at Banks
- Download the Application
- Download the ‘Mahila Samman Saving Certificate Application’ from the qualified bank’s official website, or visit the bank to get a hard copy of the form.
- Fill Out the Application
- Complete the form with accurate information, including the declaration and nomination details.
- Submit the Application Form
- Visit the bank branch and submit the completed application form along with the deposit amount and required documents to the bank’s executive.
- Receive the Certificate
- Upon successful submission, you will receive a certificate verifying your investment in the scheme.
Process to Open Mahila Samman Savings Certificate at Post Office
- Download the Application
- Download the ‘Application for Purchasing the Certificate’ from the Indian Post’s official website, or visit the nearest post office branch to request the form.
- Fill Out the Application
- Fill in the required details in the form, including the post office address, account type, payment information, personal details, declaration, and nomination details.
- Submit the Application Form
- Submit the completed application form along with the required documents.
- Make the Deposit
- Make the required deposit in the post office, either in cash or by cheque.
- Receive the Certificate
- After completing the process, you will receive a certificate acknowledging your investment in the scheme.
Documents Required to Open Mahila Samman Saving Certificate Account
Documents Required
- Duly-filled Application Form
- KYC Form for New Account Holders
- Identification Documents (any one of the following):
- Aadhaar Card
- Voter ID
- Driving License
- PAN Card
- Pay-in-Slip with the deposit amount or cheque
Banks Offering Mahila Samman Savings Certificate
Initially introduced through the Post Office, the Mahila Samman Savings Scheme was expanded on June 27, 2023. The Ministry of Finance and Department of Economic Affairs announced via an e-gazette that all public sector banks and qualified private sector banks are authorized to operate this scheme. The list of qualified banks includes:
- Canara Bank
- Punjab National Bank
- Union Bank of India
- Central Bank of India
- Bank of Baroda
- Bank of India
Mahila Samman Savings Certificate Calculation
If you invest INR 2 lakh in the scheme, you will earn ₹3,750 in interest for the first quarter. The interest compounds quarterly, meaning each quarter’s interest is calculated on the new total (principal plus previously accrued interest). This process continues for all 8 quarters. At maturity, you will receive a total of ₹2,32,044, which includes ₹32,044 in interest on your investment.
Read More: Self-Assessment Tax: Rules and Calculation
Web Stories: Self-Assessment Tax: Rules and Calculation
Official Income Tax Return filing website: https://incometaxindia.gov.in/
