If you are planning to invest in Mahila Samman Savings Scheme, then you should know about it thoroughly whether TDS will be deducted on the interest received in this scheme or not. The Central Board of Direct Taxes (CBDT) has clarified that TDS will be applicable on the interest received on Mahila Samman Savings Scheme. Under Section 194A of the Income Tax Act, 1961, tax will be deducted on the interest received from the Mahila Samman Savings Scheme. Information about this rule has been given by the Income Tax Department on May 16, 2023.
If the interest you get from this scheme in a financial year is more than Rs 40,000, then TDS will be deducted under section 194A. Interest can be obtained from the amount deposited with the bank, post office or co-operative society. Similarly, TDS will also be applicable on the interest received on bank FD. In the case of senior citizens, this limit has been increased to Rs 50,000 instead of Rs 40,000.
Features of Mahila Samman Savings Scheme
This scheme is a special small savings scheme for women. This scheme has been implemented by the government from April 1, 2023. This scheme offers an interest rate of 7.5 percent per annum to the women of the country. The interest rate will remain fixed during the investment period of two years. The interest earned from the scheme will also come under the purview of TDS. No tax exemption is available on the interest earned from this scheme.
Will be able to invest so much
In the Mahila Samman Savings Scheme, women can invest a minimum of Rs 1000 and can invest a maximum of Rs 2 lakh. As per the announcement of Union Budget 2023, this scheme is available for women only for two years. A woman can invest in the scheme from April 1, 2023 to March 31, 2025. Investment in this scheme will not be allowed after April 1, 2025, unless the government extends the date.
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