The Mahila Samman Savings Certificate is a small-savings scheme specifically meant for women investors. The primary goal of the scheme is to increase women’s participation in investments and to promote their financial inclusion. This scheme was announced in Budget 2023-24.
The Mahila Samman Savings Certificate is a one-time scheme available for two years, from April 2023-March 2025. It will offer a maximum deposit facility of up to Rs.2 lakh from a minimum amount of Rs.1,000, in the name of women or girls for two years at a fixed interest rate.
What is the Eligibility for Mahila Samman Savings Certificate?
The Mahila Samman Savings Certificate can be done only in the name of a girl child or woman. A woman or the guardian of a minor girl child can open a Mahila Samman Saving Certificate scheme.
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What is the Deposit Limit?
The minimum deposit amount under the Mahila Samman Savings Certificate is Rs.1,000 in multiples of rupees one hundred. The maximum deposit amount is Rs.2 lakh in one account or all Mahila Samman Savings Certificate accounts held by an account holder.
How many accounts can one hold?
A woman or guardian of a girl child can open a second Mahila Samman Savings Certificate account after a minimum gap of three months from the opening of the existing account.
What is the maturity period?
The maturity period of the Mahila Samman Savings Certificate account is two years. Thus, the maturity amount will be paid to the account holder after two years from the account opening date.
Can the account holder withdraw before maturity?
A partial withdrawal facility is provided under the Mahila Samman Saving Certificate scheme. The account holder can withdraw up to 40% of the account balance after one year from the account opening date.
What are the tax benefits?
Small savings schemes usually qualify for tax benefits under Section 80C.
What is the Interest Rate of Mahila Samman Savings Certificate
This scheme has a fixed interest rate of 7.5% p.a. The interest will be credited quarterly and paid at the time of closure of the account. The Central Board of Direct Taxes (CBDT) has recently clarified that the interest income earned on the investment will come under the ambit of tax.
At the same time, TDS (Tax Deduction at Source) will not be implemented on the income. Neeraj Agarwal, Partner of Nanjia Andersen India, said that according to CBDT's directives, it is clear that TDS will not be applicable if the interest income from Mahila Samman certificate does not exceed Rs.40 thousand. He said that in this scheme, the return of 7.5 percent on the maximum investment in one year will be Rs.15,000, so TDS will not be applicable.
Does Account Holder has Premature Closure of Mahila Samman Savings Certificate
The Mahila Samman Savings Certificate account can be closed before two years in the following situations:
- After six months of opening the account without giving any reason. In such a case, an interest of 5.5% will be given.
- On the death of the account holder
- In the case of an extreme compassionate ground, such as
- A life-threatening disease of the account holder
- Death of the guardian upon production of relevant documents. In such a case, the interest will be paid on the principal amount
How to Open a Mahila Samman Savings Certificate?
Women and guardians of a girl child can open a Mahila Samman Savings Certificate scheme by following the below steps:
- Download the ‘Application for purchasing the certificate’ from the official Indian Post website. You can also visit the nearest Post Office branch and get the form.
- Fill out the Post Office address under the ‘To The Postmaster’ section.
- Fill in your name in the given space and mention the account as 'Mahila Samman Savings Certificate’.
- Fill out the account type, payment and personal details.
- Fill out the declaration and nomination details.
- Submit the form with the required documents.
- Make the deposit in the Post Office through cash or cheque.
- Receive the certificate that serves as proof of investment in the Mahila Samman Savings Certificate scheme.
What are the documents required for Mahila Samman Savings Certificate Account?
- KYC documents, such as an Aadhaar card, Voter ID, driving license and PAN card
- KYC form for new account holders
- Pay-in-Slip
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