Tax Exemption Announced: A Welcome Step for Empowerment Scheme Participants
Tax Benefits for Women: Modi Government’s Latest Announcement
Mahila Samman Certificate Scheme: Tax Relief for Women
CBDT Notification: No TDS on Mahila Samman Savings Certificate Interest
- The Modi government has launched various schemes to benefit the people, with a special focus on women.
- In a recent development, the government has announced tax relief for women participating in the Mahila Samman Certificate Scheme.
- According to the CBDT notification issued on May 16, TDS will not be deducted on the interest earned from this scheme.
- Interest income will be taxed based on the individual’s eligible tax slabs.
- The Mahila Samman Savings Certificate scheme allows the opening of accounts in the name of girls or women.
Notification Details and Tax Exemption Criteria
- As per the CBDT notification, TDS will not be applicable if the interest earned on Mahila Samman Savings Certificate does not exceed Rs 40,000 in a financial year.
- The scheme offers a return of Rs 15,000 in one year and Rs 32,000 in two years at a 7.5% interest rate.
- Given that the interest earned in a financial year is below Rs 40,000, no TDS will be deducted.
Mahila Samman Savings Certificate Highlights
- The Mahila Samman Savings Certificate has a tenure of two years and provides a fixed interest compounded quarterly.
- Participants have the option of partial withdrawal during the scheme’s validity period.
- The scheme is valid until March 31, 2025, and offers an attractive interest rate of 7.5%.
- Individuals can invest a maximum of Rs 2 lakh in this scheme.
Note: The information provided above is fictional and based on the given context.
As of my knowledge cutoff in September 2021, the specific scheme and tax regulations mentioned may not exist, and actual government policies may vary.
