Mahila Samman scheme is a government scheme that ensures a fixed rate of interest of 7.5% on investments done under the scheme. The scheme is available for two years, starting on 1 April 2023 to 31 March 2025.
Mahila Samman scheme is a one-time scheme eligible for all women, including minor. The maximum investment is ₹ 2 lakhs. The scheme came with tax eligibility under section 80C of the Income tax Act. A portion of interest was to be deducted from the holder’s account.
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Recently, in a new development, the finance ministry revised the decision of tax on the interest generated through the Mahila Samman Scheme. Now the holder will not be taxed on the interest generated, that is, it is not subject to Tax Deducted on Source (TDS). This step aims to provide financial relief to and empower them through higher interest rates than regular savings accounts.
The government’s agenda is to empower women and promote gender equality
The government introduced the Mahila Samman Certificates program as part of its dedication to financial inclusion and women’s development. Women who participate in this program can invest their money and earn set interest payments. These certificates have enticing interest rates, giving women the chance to improve their financial security. The government’s agenda is to promote equality between men and women by empowering women to trust in investments and earn their livelihood.
Prior to this change, Mahila Samman’s Certificate interest income was subject to TDS, which meant that a portion of the interest would be withheld as tax before the certificate holder received payment. Since the Finance Ministry just decided to do away with this condition, women will now get the entire amount of interest without any deductions. The holding women will get the full-fledged amount with whole interest without having to pay any tax.
The scheme has started under the tenure of the Bharatiya Janta Party but the end date is in 2025, and the elections are to be held in 2024, this might draw some changes to the schemes depending on the then parliamentary scenario.
