The Mahila Samman Savings Certificate is a new small savings scheme introduced in the Budget 2023, specifically designed for women investors to encourage investments. The scheme is available to girl children or women, and the account can be opened in the Post Office or any authorized bank.
To open an account, one needs to obtain the Mahila Samman Bachat Patra Yojana form from a local bank or post office that offers this scheme, fill out the application form with all requested information, submit the application form with required documentation such as identity and address proof, select the deposit amount, and deposit the funds via cheque or cash.
The noteworthy features of the scheme include a maximum deposit limit of Rs. 2 lakh, a higher interest rate of 7.5% per annum, and partial withdrawals being permitted. The scheme offers a 24-month contract running from April 2023 to March 2025.
![A Comprehensive Guide to Mahila Samman Savings Certificate 2023 A Comprehensive Guide to Mahila Samman Savings Certificate 2023](/img/preview/custom/20210222052148_gstannual.jpg)
The scheme allows for a minimum investment of Rs. 1000, and any sum in multiples of one hundred rupees may be deposited in an account. The interest rate on the deposits will be compounded quarterly and credited to the account.
The deposit will mature after two years from the deposit date, and the account holder may receive the balance by submitting an application in Form-2 to the accounts office. After the first year from the date of account opening but before the account's maturity, the account holder can withdraw a maximum of 40% of the balance by submitting a Form-3 application.
The account shall not be closed before maturity except in specific cases, including the death of the account holder or the post office or bank determining that the operation of the account is putting the account holder through undue hardship due to extreme compassionate circumstances.
Charges applicable to the scheme include Rs. 40 for receipt via physical mode, Rs. 9 for receipt via e-mode, and 6.5 paise per Rs. 100 turnover for payments.
While the taxing structure of the scheme has not yet been determined, savings schemes are generally eligible for Section 80C tax breaks. Women investors have to fill Form - I, on or before the 31st March, 2025.
In summary, the Mahila Samman Savings Certificate is a new small savings scheme introduced for women investors. The scheme offers a higher interest rate, allows for partial withdrawals, and has a maximum deposit limit of Rs. 2 lakh. The account can be opened in the Post Office or any authorized bank, and charges apply for transactions.
The author is a Chartered Accountant with 2 decades of experience into Accounting, Taxation, Auditing, Risk & Compliance, Credit Controls, Due diligence. Currently, the author is the founder and managing partner at RRL Global services.