Mahila Samman Savings Certificate (MSSC) Calculation 2023: Finance Minister Nirmala Sitharaman announced a new one-time small savings scheme, MSSC, for women during her Budget Speech 2023. To commemorate Azadi Ka Amrit Mahotsav, the MSSC scheme will offer deposit facility of up to Rs 2 lakh in the name of women or girls for a tenure up to 2 years (up to March 2025) at a fixed rate of 7.5% with a partial withdrawal option.
While formal notification for the MSSC scheme will be out soon, here’s a look at the returns Rs 2 lakh investment in this scheme will give and whether it will be tax-free.
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Mahila Samman Savings Certificate (MSSC) Calculation
The interest income calculation for the MSSC scheme is likely to be the same as other small savings schemes offered by the Post Office.
At 7.5% interest, the MSSC scheme will give a return of Rs 15,427 in one year and Rs 32,044 in two years. Thus, the total value of Rs 2 lakh investment in two years will become Rs 2.32 lakh.
MSSC Scheme: Will it be tax-free?
The Finance Minister didn’t clarify whether investment under the MSSC scheme will qualify for deduction under the Income Tax Act or not. You will have to wait for the official notification for clarity on the taxation of investments done under the MSSC scheme.
Experts say MSSC is a good step to encourage savings. “This is a good step to encourage savings in the country, along with help the Govt to finance fiscal deficit. It remains to be seen how the offer rate of 7.5% plays out when compared to the present Bank FD rate at 6.75%. The Government may mark the MSSC as an Exempt-Exempt-Exempt (EEE) investment,” SBI Research said in its special report on Budget 2023.
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Where to open an MSSC account?
MSSC account opening facility is likely to be made available at Post Office. However, the Government may allow some banks also to offer the MSSC scheme. You should wait for an official notification for clarity.
Who should invest in the MSSC scheme?
Women investors/depositors looking for safe investment options with a decent return may consider the MSSC scheme. It will provide 7.5% interest, which is better than Fixed Deposit plans of various tenors offered by banks and the Post Office. Currently, the Fixed Deposit interest offered for a 2-year term by Post Office is 6.8%.
When can you open an MSSC account?
The MSSC scheme account opening facility is likely to be available from April 1, 2023 or as and when announced by the Government of India.