TDS for Mahila Samman Savings Certificate and Senior Citizens Savings Scheme – SB Order dated 31.05.2023
SB Order No. 13/2023
Government of India
Ministry of Communications
Department of Posts
Dak Bhawan, New Delhi – 110001
All Head of Circles / Regions
Subject : Applicability of Tax Deduction at Source (TDS) in respect of Mahila Samman Savings Certificate (MSSC) – Regarding.
Mahila Samman Savings Certificate (MSSC) scheme has been notified as a scheme in which TDS under Section 194A of Income Tax Act, 1961 (43 of 1961) vide Notification No. S.O. 2189(E) dated 16th May 2023 issued by Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. A copy of the notification is attached herewith.
- Accordingly, TDS deduction under Section 194A (Tax deduction on Interest other than “Interest on securities”) is applicable on the interest income earned through the following schemes notified by Central Government.
(i). Senior Citizens Savings Scheme (SCSS)
(ii). Mahila Samman Savings Certificate (MSSC)
- Hence, if the aggregate amount of interest credited or paid to the payee in respect of SCSS and MSSC schemes during a Financial Year exceeds the following threshold limit, TDS is required to be deducted.
|Threshold limit in ₹
|Senior Citizen (individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.)
4. This may be circulated to all the Offices for information and wide publicity among the public.
5. This is issued with the approval of competent authority.
Encl: As above.
(T C VIJAYAN)
Asst. Director (SB-I)
Mahila Samman Savings Certificate now available in Post Offices
Posted On: 10 APR 2023 7:59PM by PIB Chennai
The Mahila Samman Saving Certificate (MSSC) is a new small savings scheme launched by Ministry of Finance, Govt. of India aimed at encouraging women investors. Central government has introduced this scheme in the Budget 2023 to mark the Azadi Ka Amrit Mahotsav and is a significant step towards financial inclusion and empowerment of the women, including the girls. Amount can be invested in the name of individual girl or woman. Minor account can be opened through natural or legal guardian.
The minimum investment amount is Rs. 1,000 and the maximum amount is Rs. 2 lakhs. The scheme will mature in two years from the date of opening the account. Interest rate for MSSC is 7.5% per annum, compounded quarterly. The scheme is operational during the period 01.04.2023 to 31.03.2025.
- Withdrawal is allowed up to 40% of the eligible balance which can be taken after expiry of one year from the date of opening the account.
- The savings account can be closed due to the death of the depositor or guardian and on extreme medical grounds. Premature closure of the account is allowed at any time after six months of opening but with the interest rate reduced by 2%.
On behalf of Tamilnadu Postal Circle, it is requested to utilize the opportunity launched exclusively for the empowerment of women benefit by approaching nearby post offices. For further details, please visit https://www.indiapost.gov.in.