Mahila Samman Savings Scheme: The scheme is a one-time savings scheme which is primarily objected at increasing women’s participation in financial investment. It should also be noted that the scheme is available only for the period of two years and can’t be invested after 31st March, 2025.
Mahila Samman Savings Certificate: The Central Government during the 2023–24 Budget announced the “Mahila Samman Savings Scheme,” under which a girl or woman of any age may open a one-time plan under her name and earn government-assured returns. In this scheme, you can start investing with a minimum investment of Rs 1,000 or any of its multiples, with a maximum cap of Rs 2 Lakh.
The scheme is a one-time savings scheme that is primarily aimed at increasing women’s participation in financial investment. It should also be noted that the scheme is available only for a period of two years and can’t be invested after March 31, 2025.
Calculation Of Returns On Mahila Samman Savings Scheme
The amount of interest that you receive in this scheme is compounded quarterly but paid upon maturity. “The return on Mahila Samman Savings Certificates is computed weekly and compounded along with the invested money, similar to cumulative fixed deposit or post office time deposit programmes,” Vinit Khandare, CEO and Founder, MyFundBazaar, was quoted as saying by the Mint.
To calculate the interest that is applicable on the investment in the scheme, the simple interest formula of interest calculation can be used, which is the principal amount multiplied by the interest rate and the duration of the investment.
Moreover, the central government has also announced that the interest rate on the scheme will be the same, that is, 7.50 percent for the two-year period.
Tax Incentives On Mahila Samman Savings Scheme?
As of today, unlike any other small savings scheme, the government has not announced any tax incentives for this one. So, it is assumed that it will come under normal taxation.
TDS Applicability To The Interest Earned
As per a report in the Mint, TDS under Section 194A is applicable if the interest earned on the scheme exceeds Rs. 4000 in a financial year.
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