Is Mahila Samman Savings Certificate Tax Free?

The Mahila Samman Saving Certificate, 2023, a new small-savings programme created for women, is available from 01/04/2023 in the Post Offices at an interest rate of 7.5% p.a. The programme was officially launched on April 1, 2023, and 1.59 lakh post offices already offer it.

How to open Mahila Samman Savings Certificate?

• Visit the nearest Post Office branch and get the account opening form
• Submit the Account Opening Form
• Attach the KYC Document (Aadhaar and PAN card), KYC form for new account holders, and the Pay-in-Slip together with the deposit amount or check.

Is Mahila Samman Certificate Tax-free?

Investment made under the plan is not exempt from taxation under Section 80C of the Income Tax Act. Interest obtained through the plan is taxed. You cannot enjoy tax benefits, unlike fixed deposits that save taxes.

Interest earned on Mahila Samman Savings Certificates is not tax-exempt. Depending on the overall amount of interest income and the individual tax slabs, TDS will be deducted.

Minimum and maximum investment

MSSC requires a minimum investment of Rs. 1000 and multiples of 100. Per account, or for all accounts owned by one account holder, the maximum limit is Rs 2 lakh. A three-month buffer must be kept between the creation of another account and the present account.

Maturity

The deposit matures two years following the deposit date, at which point the account holder must make an application in Form-2 to the accounts office in order to obtain the eligible sum. The maturity value will be determined by rounding each fraction of a rupee to the next rupee. Any sum higher than or equal to fifty paise is treated as one rupee for the purposes of this calculation, and any quantity less than fifty paise is ignored.

Premature Withdrawal

• In case of account holder's death
• On extreme compassionate ground such as Life threatening decease of account holder or death of the guardian on production of relevant documents
• After six months of account opening