Now, apply for Mahila Samman Savings Certificate in banks

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Now, one can apply for the Mahila Al Samman Saving Certificate, 2023, in 12 public sector banks and four private sector banks. the The scheme was announced in the Union budget this year.

Finance Minister Nirmala Sitharaman announced: “To celebrate the memory of Azadi ka Amrit Mahotsav, a one-off small savings scheme, Mahila Samman Savings Certificate, will be made available for a period of two years till March 2025. This will provide deposit facility of up to Rs 2 lakh in the name of women or girls for a period of two years at an interest rate A fixed rate of 7.5 percent, with the option of partial withdrawal.

Initially, the scheme was provided through post offices. Now notice says, all public sector banks and ICC BankAnd Axis bankAnd HDFC Bank Ltd And IDBI Bank is “authorized to operate the Mahila Samman Provision Certificate, 2023” from 27 June.

Among the specific terms of the licence, the Bank’s dedicated software for the operation and accounting of national savings schemes, with specific functions for each scheme. The bank may manage operations in online mode also in all branches on the core banking solution, subject to adequate security checks. All remittances will be credited to the Government Account at Reserve Bank of India, Central Accounts Division, Nagpur, within one day in case of Core Banking Solution branches, and three days in case of Non-Core Banking Solution branches.

Also read: Mahela Alsman’s savings certificate: Should you invest?

“In the event of delay in money transfers after the period, as mentioned, the bank pays a fine equal to the interest rate due to the depositor plus 0.5 percent in case of delays of up to 30 days, and 1 percent in case of a notification,” the bank said, while adding that the bank It will report the various transactions under the appropriate codes to the Reserve Bank of India, and the Ministry of Finance may impose a fine if the bank fails to account.

The Bank will be required to announce in advance the list of branches that will not operate any of the National Savings Programmes. Every bank will be required to submit a periodic report or such other information as may be required from time to time to the Central Government in respect of subscription deposits and withdrawals under the said system.

The government has already made that clear Withholding Tax will not be applied to interest earned on Mahela Alsman Savings Certificatebut the interest income will be added to the total income to calculate the tax.

The Department of Finance’s notification states that the MSSC will be scheme under “subsection (c) of clause (1) of subsection (3) of section 194a of the Income Tax Act 1961”. Section 194a deals with provisions relating to TDS on interest other than interest on securities. The tax is withheld under section 194a if interest (other than interest on securities) is paid to a resident.

This, however, will not be applicable, as provided by the interest of up to Rs 40,000 on any deposit at the Post Office under any scheme made and notified by the Centre. The exemption limit for senior citizens is Rs 50,000.