Mahila Samman Savings Certificate (MSSC) Sheme -2023
The Mahila Samman Savings Certificate is a one-time small savings scheme exclusively for women. This scheme was announced in the Union Budget 2023. Now, launched and is available for investment.
The primary objective of the saving scheme is to empower women and increase their participation in investments. Let’s see the details of this scheme.
What is Mahila Samman Saving Certificate Scheme?
The Mahila Samman Savings Certificate is a one-time savings scheme meant for women.
It is a government-guaranteed scheme where women can earn a fixed interest of 7.5%. This scheme is available for investment for two years only, starting from April 1, 2023, to March 31, 2025. After this period, one cannot invest in this scheme.
Features of Mahila Samman Savings Certificate
All women are eligible to open an account, which can be opened for herself or by a guardian (female or male) on behalf of a minor girl.
Under this scheme, a single account holder can make a cumulative deposit of Rs 200,000 (maximum) – either at one time or in phases where a minimum time gap of three months shall be maintained between the existing A/c and the opening of another account.
| Key Features – Mahila Samman Savings Certificate | |
| Eligibility | Any women, including minor girl |
| Interest rate | 7.50% |
| Minimum Deposit | Rs. 1000 |
| Maximum Deposit | Rs. 2 lakh (combined in all accounts) |
| Maturity period | 2 years |
Withdrawal Rules – Mahila Samman Savings Certificate
As there is a lock-in period of 2 years specified under this scheme. However, partial withdrawal of up to 40 percent is permitted once after the expiry of one year from the date of opening of the account.
Premature closure of MSSC accounts
The scheme comes with a maturity period of two years. But there are some exceptions to this rule where premature closure of accounts is allowed. These are:
- On the death of the account holder
- On extremely compassionate grounds, such as the account holder’s life-threatening disease, the guardian’s death, etc. For this, you will have to provide the relevant documents.
- After six months from the date of account opening without any reason. But in this case, your interest rate will be reduced by 2% and become 5.5%.
Taxability of Interest earned from Mahila Samman Savings Certificate
As such there is no clarity on taxability of interest income earned under this scheme. Government is yet to announce or clarify the taxation matter or tax benefits available to be available under this savings scheme.