Mahila Samman Savings Certificate: Good news for investors, TDS will not be deducted on this new scheme of Post Office

Mahila Samman Savings Certificate: The government has given a big relief to the investors. TDS will not be deducted on this. The Mahila Samman Saving Certificate Scheme was announced in Budget 2023 in February this year. 

May 17, 2023 - 17:06
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Mahila Samman Savings Certificate: Good news for investors, TDS will not be deducted on this new scheme of Post Office

CBDT said on Wednesday that TDS will not be deducted from the interest received on Mahila Samman Saving Certificate Scheme (MSSC). On this only tax will have to be paid as per the tax slab of the interest recipient.
This is good news for those investors who are planning to invest in Mahila Samman Savings Certificate Scheme (MSSC).
A notification has been issued by the Central Board of Direct Taxes (CBDT) on 16 May. In this, a provision has been made not to deduct TDS from Mahila Samman Saving Certificate Scheme.
Mahila Samman Saving Certificate Scheme is run by the Central Government, especially for women. This was announced by the central government in the budget 2023. In this, a maximum of two lakh rupees can be invested at a time. You can invest in Mahila Samman Saving Certificate Scheme by visiting your nearest post office.
TDS is not applicable on interest earned on Mahila Samman Savings Certificate (MSSC), said Neeraj Agarwal, partner at Nangia Andersen India, reported news agency PTI. Because according to 7.5 percent interest, a maximum interest of Rs 15,000 is available on MSSC in one year and a maximum of Rs 32,000 in two years. TDS is deducted on income above Rs.40,000.
By investing in Mahila Samman Saving Certificate Scheme, you can save up to Rs 1.5 lakh in a financial year under Section 80C of Income Tax.

Muskan Kumawat Journalist & Writer