Mahila Samman Bachat Patra: All You Need to Know

Investing in schemes is crucial for individuals seeking diverse opportunities and robust financial growth. India’s economic landscape offers a myriad of investment avenues, from government-backed savings schemes to dynamic equity markets. 

These investments not only provide potential returns but also contribute to national development. The government’s initiatives, such as tax-saving schemes and savings certificates, further enhance the attractiveness of Indian investment options. 

Are you looking for the best schemes for your girl child? If yes, then Mahila Samman Bachat Patra is the right option, offering secure and rewarding investment opportunities for financial growth and stability. 

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Overview of Mahila Samman Bachat Patra Yojana

The Mahila Samman Bachat Patra Yojana 2023 Scheme was launched by the Central Government of India on February 1, 2023, and is set to continue until March 2025. 

Proposed by Union Finance Minister Nirmala Sitharaman during the Budget 2023 presentation, this initiative was announced in commemoration of the Azadi ka Amrit Mahotsav. 

To financially empower women, the Mahila Samman Bachat Patra Yojana 2023 lasts two years and allows a maximum deposit of two lakhs.

Key features of Mahila Samman Savings Patra

This dedicated savings scheme emphasizes women’s empowerment, providing a secure and dependable investment avenue. Let’s explore key features:

• Risk-free investment: As a government-backed fixed-income savings scheme, it carries no market risk, ensuring guaranteed returns for investors.
• Investment tenure: With a two-year investment term, it operates as a one-time investment scheme.
• Competitive interest rate: Offering a fixed interest rate of 7.5% per annum exceeds rates in most fixed-income savings schemes.
• Investment limit: The scheme allows a maximum investment of Rs. 2 lakhs with no specified minimum limit.
• Tax savings: Additionally, the scheme provides tax-saving benefits under Section 80C.
• Premature withdrawals: A partial withdrawal facility is available if needed before the two-year tenure.
• Simple procedure: Conveniently apply for the Mahila Samman savings certificate at your nearest post office or authorized bank.

Benefits of Mahila Samman Savings Certificate (MSSC) 2024

This user-friendly scheme offers various advantages, including attractive interest rates, seamless processing, and tax benefits. Some highlights of this scheme include:

• It is exclusively designed for women and girls, empowering them to make independent financial decisions.
• Provides a competitive interest rate of 7.5%, surpassing regular savings options.
• Allows easy access to funds for medical emergencies or education expenses.
• Permits penalty-free withdrawals, including partial withdrawals.
• The minimum deposit is Rs. 2,000, and the maximum deposit limit is Rs. 2 lakhs, with a two-year deposit period.
• Involves a risk-free and straightforward documentation process.
• The deposited amount qualifies for tax benefits under Section 80C of the Income Tax Act.

Eligibility Criteria For Mahila Samman Bachat Patra

The Mahila Samman Bachat Patra Yojana 2024 has the following eligibility criteria.

• Any Indian woman or girl is eligible for the scheme.
• Women above 18 years old can participate in the Mahila Samman Bachat Patra Yojana.
• A guardian may open an account on the girl’s behalf if she is a minor. 

Documents required to apply for Mahila Samman Bachat Patra     

The following documents will be necessary to open an MSSC account:

• Aadhaar card 
• Identity proof
• Address proof
• Ration card
• Two passport size photographs
• Proof of income 
• Active mobile number
• Post office or bank account book

Steps to open Mahila Samman Bachat Patra Yojana 

Do you need to know mahila samman saving certificate how to apply online? Applying for the Mahila Samman Bachat Patra scheme is simple and can be accomplished by following the steps mentioned below:

• Go to your closest post office or an authorized bank.
• Ask for an application form and complete all the required details.
• Alternatively, download the application from the appropriate link. 
• Submit the application with necessary documents like ID proof and address proof.
• Make the deposit in cash or by cheque for your selected amount.
• Ultimately, obtain the certificate serving as proof of your investment.

Mahila Samman Savings Certificate Calculation

If you invest Rs.2,000,000 in the scheme and receive an annual interest rate of 7.5%. 

Thus, you will receive Rs.15,000 in interest on the principle amount in the first year and Rs.16,125 in interest in the second year. 

Thus, after two years, you will have received Rs.2,31,125, which means 2,00,000 initial investment + 31,125 interest for two years. As a result, your maturity amount will be Rs.2,31,125 after two years.

Also Read: 10 Best Guaranteed Income Plans 2024 | Why are demand deposits considered as money?

Withdrawal Policy of Mahila Samman Bachat Patra

The Mahila Samman saving Patra scheme offers a partial withdrawal option. Account holders can withdraw up to 40% of the balance after one year from the account opening date. 

If the account is opened for a minor girl, the guardian can apply for the withdrawal of the amount by filling out Form 3. 

When calculating the withdrawal, any amount in fractions of a rupee is rounded off to the nearest rupee. Fifty paisa or more is considered as one rupee, while anything less than fifty paisa is disregarded.

What Happens for Premature Closure of Mahila Samman Savings Certificate?

You have the option to close your Mahila Samman Savings Certificate account before the 2-year maturity period under specific circumstances:

• If closed after 6 months from the account opening date without stating any reasons, the account holder will receive an interest rate of 5.5%.
• In the event of the account holder’s death.
• On extreme compassionate grounds, such as the account holder facing a life-threatening disease and the guardian’s death, upon submission of relevant documents. In such a situation, interest will be paid on the principal amount.

Mahila Samman Saving Certificate Latest Tax Update

The most recent Central Board of Direct Tax notification states that if the interest you receive from investing in a Mahila Samman Savings Certificate is less than Rs 40,000 annually, you won’t be required to pay any TDS. 

A maximum investment of Rs 2 lakh will yield an interest income of Rs 15,000 in the first year and Rs 32,000 in the second, with an annual interest rate of 7.5%. Since the interest income in this case is less than Rs 40,000, TDS is not applicable.

The Mahila Samman Savings Certificate is not covered by Section 80C of the Income Tax Act 1961. As a result, account holders will not be eligible to deduct their investments from taxes.

Mahila Samman Bachat Patra Rate of Interest 

Beneficiaries of this scheme can deposit up to 2 lakhs, and the maximum deposit period is 2 years. A woman can take advantage of the scheme’s 7.5% interest rate. 

The Mahila Samman Bachat Patra Yojana scheme offers a higher return rate than other government modest savings schemes. This savings plan’s interest rate won’t change, unlike others.

FAQs on Mahila Samman Bachat Patra Yojana

1. Does Mahila Samman Bachat Patra Yojana function as a long-term savings scheme?

No, Mahila Samman Bachat Patra Yojana is a small savings scheme with a two-year tenure.

2. Is the Mahila Samman Saving Certificate tax-exempt?

No, there is no tax deduction for investments in the Mahila Samman Saving Certificate under Section 80C. However, as the interest received is below Rs.40, 000, no TDS is deducted from the interest amount.

3. Can Mahila Samman Bachat Patra have shared account holders?

Yes, the Mahila Samman Bachat Patra scheme can be invested in jointly. Any two female adults can be joint account holders.