Mahila Samman Saving Certificate: The Central Government has introduced a scheme aimed at providing financial security to women and girls, known as the Mahila Samman Bachat Patra Yojana. This initiative, launched in 2023, functions as a small savings scheme requiring a 2-year deposit commitment, with the current interest rate set at 7.5 percent.
Who Can Invest?
Women or their minor daughters are eligible to invest in this scheme. Additionally, husbands can invest on behalf of their wives. It’s important to note that the current interest rate for the scheme is 7.5 percent.
Mahila Samman Saving Certificate: Account Opening
To open a Mahila Samman Saving Certificate account, visit your nearest post office. Parents can open accounts for girls below 18 years of age. When opening an account, you will need to complete Form-1 and provide KYC documents such as an Aadhar card, PAN card, and a coloured photograph. The benefits of this scheme are available until the year 2025.
Withdrawal Rules
Investors in this scheme are required to maintain their deposits for a 2-year period before being eligible to withdraw the maturity amount. Early withdrawals are permitted after 1 year. Notably, the Mahila Samman Saving Certificate qualifies for tax benefits under Section 80C of the Income Tax Act of 1961. However, taxes are applicable on the interest earned within the scheme.
Also Read: Income Tax Update: Is It Possible to Save on Taxes Through Stock Market Investments?
PPF Vs Mahila Samman Savings Certificate
| Particulars | Mahila Samman Savings Certificate | PPF |
|---|---|---|
| Eligibility | Women and girl children | Any individual Indian citizen |
| Interest Rate | 7.5% | 7.1% |
| Tenure | 2 years | 15 years |
| Deposit Limit | Minimum – Rs.1,000 Maximum – Rs.2 lakh | Minimum – Rs.500 Maximum – Rs 1.5 lakh |
| Premature Withdrawal | Permits 40% withdrawal after one year | Permits partial withdrawal after 7 years |
| Tax Benefit | No tax deduction under Section 80C | Exempt-Exempt-Exempt (EEE) category under Section 80C category |
NSC Vs Mahila Samman Savings Certificate
| Particulars | Mahila Samman Savings Certificate | NSC |
|---|---|---|
| Eligibility | Women and girl children | Any individual, including NRIs |
| Interest Rate | 7.5% | 7.7% |
| Tenure | 2 years | 5 years |
| Deposit Limit | Minimum – Rs.1,000 Maximum – Rs.2 lakh | Minimum – Rs.100 Maximum – No limit |
| Premature Withdrawal | Permits 40% withdrawal after one year | Allowed in certain circumstances |
| Tax Benefit | No tax deduction under Section 80C | Deductions of up to Rs.1.5 lakh under Section 80C |
SCSS Vs Mahila Samman Savings Certificate
| Particulars | Mahila Samman Savings Certificate | SCSS |
|---|---|---|
| Eligibility | Women and girl children | Senior citizens aged above 60 years |
| Interest Rate | 7.5% | 8.2% |
| Tenure | 2 years | 5 years |
| Deposit Limit | Minimum – Rs.1,000 Maximum – Rs.2 lakh | Minimum – Rs.1,000 Maximum – Rs.30 lakh |
| Premature Withdrawal | Permits 40% withdrawal after one year | Can be closed at any time |
| Tax Benefit | No tax deduction under Section 80C | Deductions of up to Rs.1.5 lakh under Section 80C |
SSY Vs Mahila Samman Savings Certificate
| Particulars | Mahila Samman Savings Certificate | SSY |
|---|---|---|
| Eligibility | Women and girl children | Only in the name of a girl child before she attains 10 years |
| Interest Rate | 7.5% | 8.0% |
| Tenure | 2 years | 21 years from opening the account or when the girl child attains 18 years |
| Deposit Limit | Minimum – Rs.1,000 Maximum – Rs.2 lakh | Minimum – Rs.250 Maximum – Rs.1.5 lakh |
| Premature Withdrawal | Permits 40% withdrawal after one year | Allowed under certain circumstances |
| Tax Benefit | No tax deduction under Section 80C | Exempt-Exempt-Exempt (EEE) category under Section 80C category |