Kolkata: The Mahila Samman Savings Certificate Scheme debars anyone from investing more than R 2 lakh. But this instrument carries a sovereign guarantee and will pay 7.5% interest to the depositor. It ensures that the depositor will get Rs 2,32,044 (or more than Rs 2.32 lakh) on maturity. One point must be clarified at the outset. It is not mandatory that married women like your wife can only invest in this instrument. Any woman — be it your sister, daughter, niece, mother — can buy a Mahila Samman Savings Certificate. It has been on offer from April 1, 2023.
The amount that one can deposit at a minimum under this scheme is Rs 1,000 and ramp it up by multiples of Rs 100. But the maximum deposit allowed is Rs 2 lakh in one account. But if you think you will open many accounts and invest Rs 2 lakh in each freely, you cannot do that. Two accounts must be separated by 3 months in time, says the rules. The entire maturity amount is paid to the account holder after two years have elapsed from the date of opening the account.
No TDS from Mahila Samman Saving Certificate Scheme
Apart from post offices, the following banks offer Mahila Samman Saving Certificate: Bank of Baroda, Central Bank of India, Canara Bank, Bank of India, Union Bank of India, Punjab National Bank. The rules stipulate that TDS (Tax Deducted at Source) will not be deducted from the interest received from this instrument. Section 194A of the Income Tax Act, 1961 states that TDS will apply only when the interest received in any particular financial year exceeds Rs40,000. The amount becomes Rs 50,000 if the investor is a senior citizen. But in the case of Mahila Samman Saving Certificate, the interest does not exceed Rs 40,000 and, therefore, it does not come under the purview of TDS. However, the Mahila Samman Savings Certificate is not income tax free.
Can Mahila Samman Savings Certificates be closed prematurely
Mahila Samman Savings Certificates can be closed before the stipulated maturity period of two years under a few conditions when one has to tap the funds urgently. These can be:
- Death of the account holder
- Life-threatening disease of the account holder
- Death of the guardian (furnishing relevant documents necessary)
One must note that in case of death, interest of 7.5% will be paid. But in other instances an interest of 5.5% will be paid on the deposited amount. In other words, there will be a deduction of penal amount for the foreclosure.
One of the focus areas of Narendra Modi government is to empower women financially. The government has launched 2 investment instruments Sukanya Samriddhi Yojana and Mahila Samman Savings Certificate Scheme. The Mahila Samman Savings Certificate Scheme is available at post offices and offers guaranteed returns to the depositor. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
