No TDS on Interest from Mahila Samman Savings Certificate
May 23 , 2023 469 days 421 0
The recent Central Board for Direct Tax (CBDT) notification provides clarity on the taxation of interest earned from Mahila Samman Savings Certificate.
As per the notification, if the interest earned does not exceed Rs. 40,000 in a financial year, no TDS will be applicable.
It is aimed to encouraging more women towards investing.
It has received a tax deducted at source exemption on interest earnings.
The Mahila Samman Savings Certificate scheme was introduced during FY23 as a savings option exclusively for girls and women.
It offers an attractive annual interest rate of 7.5%.
It allows individuals to open an account in their name.
The maximum deposit limit for the scheme is set at Rs. 2l akh.