Mahila Samman Saving Certificate Scheme, launched with the aim of making women financially strong and self-reliant, has inspired many women to save and invest. Women can invest in this scheme till March 2025. However, the government has not yet made any announcement to extend the investment time of this scheme. It is expected to be seen in Budget 2025 whether the government will extend the duration of this scheme or not.
Mahila Samman Saving Certificate: What is this scheme?
Mahila Samman Saving Certificate Scheme was launched exclusively for women and girls through post office.
- Objective: To encourage women towards savings and investment.
- Investment time limit: Investments in the scheme can be made till March 2025.
- Who can invest?
- Indian women.
- This scheme is also available for minor girls, in which their parents or guardian can open an account.
Will the government extend the time of the scheme?
- Till now, there has been no official announcement from the government regarding extending the deadline of the scheme.
- Hope:
- Considering the demand of women, it is likely that the government may announce extension of the deadline of the scheme in Budget 2025.
- This step will give more time and incentive to women for financial investment.
Interest rate on Mahila Samman Saving Certificate
- Interest Rate: 7.5% interest is given annually on this scheme.
- Interest Payment:
- Deposited in women’s bank accounts on quarterly basis.
- Interest is paid along with the principal amount after a period of 2 years.
- tax benefit:
- Interest is exempted under Income Tax Act 80C.
- However, TDS (Tax Deducted at Source) is deducted on interest income.
How can this scheme make women financially strong?
- Good returns in 2 years:
- If you invest Rs 2 lakh, you will get a return of Rs 2.32 lakh after a period of 2 years.
- Minimum and Maximum Investment:
- Minimum investment: ₹1000.
- Maximum investment: ₹2 lakh.
- Withdrawal facility:
- 40% amount can be withdrawn after 1 year of account opening.
- Permission to close account:
- Account can be closed without any reason after 6 months of opening, but the interest rate will be 2% less (5.5%).
- The account can be closed on the death of the account holder.
Benefits of the scheme for women
- High interest rate: The rate of 7.5% gives better returns than many other savings schemes in the market.
- Short-term investment: Attractive returns in just 2 years, saving women the hassle of long-term planning.
- Security and tax benefits: Being a post office scheme, it is safe and also has tax benefits.
Expectations from Budget 2025
- Extension of the scheme: Women are expecting the government to extend the deadline of the Mahila Samman Certificate Scheme.
- New options:
- Other investment schemes may be announced for women.
- The government can introduce tax exemptions and new schemes to empower women economically.
