The Mahila Samman Savings Certificate (MSSC) is a unique small-savings scheme launched by the Department of Economic Affairs, Ministry of Finance to provide financial security and encourage savings among girls and women in India.
Announced in the Union Budget 2023-24, this scheme is aimed at creating a safe and lucrative investment avenue for women, fostering a culture of long-term savings and financial independence.
Operational since April 1, 2023, the scheme is available through Post Offices and select Public Sector Banks and eligible Private Sector Banks. The scheme has a validity period up to March 31, 2025 making sure that ample opportunity for individuals to participate in this financial initiative.
The scheme offers a secure and attractive investment option for women, with notable benefits regarding tax treatment and deductions. Here’s an in-depth look at the tax-related aspects of this scheme:
₹40,000 for general account holders, or
₹50,000 in the case of senior citizens.
While TDS is not deducted, the interest earned under the MSSC is taxable as per the individual’s income tax slab. Beneficiaries must declare this income while filing their Income Tax Returns.
The deposits made under the Mahila Samman Savings Certificate Scheme do not qualify for tax deductions under Section 80C or other provisions of the Income Tax Act. Therefore, there is no upfront tax-saving benefit for the investment amount.
Although MSSC is designed for a fixed tenure of two years, premature closure is permitted in the following situations:
The Mahila Samman Savings Certificate is a well-rounded scheme designed to enhance the financial well-being of women across India. By offering attractive returns, a secure investment platform, and easy accessibility, it not only promotes financial independence but also aligns with the larger vision of women empowerment. With its limited-time availability, women and guardians of young girls should seize this opportunity to invest in their financial futures.
Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited
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