The Mahila Samman Saving Scheme, initiated by the Government of India, is exclusively designed for women. This scheme offers a lump sum plan that guarantees a steady income upon maturity.
Calculating interest on women’s savings:
The interest earned through the Mahila Savings Scheme is accrued quarterly and paid upon maturity. The total investment amount in this scheme is calculated using a simple interest rate formula. Similar to fixed deposit and post office time deposit programs, compound interest is applied to the invested sum, ensuring the interest continues to grow.
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Determining the total amount:
To calculate the interest earned on your investment, the simple interest formula is employed, multiplying the principal amount by the interest rate and the investment tenure. For instance, if you invest Rs 2 lakh, you will receive an interest of Rs 3,750 after the first quarter. Upon reinvesting this amount at the end of the second quarter, your interest will increase to Rs. 3,820. Consequently, upon maturity of the scheme, you will receive a total of Rs 2,32,044.
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Mahila Samman Savings Scheme interest rate:
The Mahila Samman Savings Certificate offers a fixed interest rate of 7.5 percent for a two-year period, spanning from 2023 to 2025. This interest rate remains constant throughout the entire duration of the scheme.
Tax deduction at source (TDS) on interest:
As per a notification by the CBDT on May 16, 2023, no tax exemption is available on the interest earned from the scheme. TDS under section 194A will be applicable if the interest earned exceeds Rs 40,000 in a financial year.
