TDS will not be deducted on the interest received from the Mahila Samman Certificate, a savings scheme launched for women. However, whatever interest will be earned on this, investors will have to pay tax according to the tax slab on that income.
Mahila Samman Certificate: TDS will not be deducted on the interest received from Mahila Samman Certificate, a savings scheme launched for women. However, whatever interest will be earned on this, investors will have to pay tax according to the tax slab on that income. The Central Board of Direct Taxes (CBDT) has notified the Tax Deduction at Source (TDS) provision for the Post Office Savings Scheme.
How much interest will be made
Neeraj Aggarwal of Nangia Andersen India said that the CBDT notification has clarified that TDS will not be deducted if the interest earned on Mahila Samman Savings Certificate does not exceed Rs 40,000 in a financial year. Aggarwal said, “Under the scheme, an interest of Rs 15,000 will be generated in a year on a deposit of Rs 2 lakh at 7.5 per cent interest. In two years it will be Rs 32,000. In such a situation, it can be said that in any one financial year the interest is less than Rs 40,000, in which case TDS will not be deducted.
About the plan
Presenting the general budget on February 1, Finance Minister Nirmala Sitharaman had announced the launch of the Mahila Samman Certificate Scheme. It has been started in the current financial year. A maximum of Rs 2 lakh can be deposited in this. It will get 7.5 percent interest annually. The deposit will mature in two years.
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