Who benefits from the Mahila Samman plan?
Who benefits from the Mahila Samman plan?
The budget for the fiscal year 2023–2024 included a special savings programme dubbed the “Mahila Samman Savings Certificate” programme, which was unveiled by Finance Minister Nirmala Sitharaman.
If you don’t know about this programme, keep reading to learn about its features and advantages, how much return it produces, and how much money you should put into it.
A government programme for small savings, specifically for women, is called Mahila Samman Savings Certificate.
It was introduced primarily to boost the involvement of women in financial management and investing.
A new account may be opened under the plan from April 1, 2023, until March 31, 2025. This programme is only available for two years. C
urrently, 1.59 lakh post offices around the nation offer this programme.
You must complete Form 1 in order to open an account with the Mahila Samman Savings Certificate programme. A deposit can be made for a minimum of 1000 rupees and a maximum of 2 lakh rupees. The limit per person is the same whether it is reached through one account or several accounts.
Parents or other responsible adults may open an account in a minor girl’s name. It takes two years for it to reach maturity. For instance, if you invest on July 1, 2023, you will receive your money back with interest two years later, on July 1, 2025.
The frequency with which new accounts are being opened is a good indicator of how well-liked the Mahila Samman Savings Certificate programme is. 5 lakh women invested in it between April 1, 2023, and May 31, or barely two months, according to a report. The government treasury has received 3,666 crore rupees as a result. This indicates that each account has received an average deposit of more than 73 thousand rupees. Banks are anticipated to permit women to open such accounts by the end of June. As a result, there is a chance that collection will expand quickly in the future.
Let’s examine the mathematics underlying the Mahila Samman Scheme’s return on investment. The fixed return on investment in this scheme is 7.5% annually. Interest is due every three months.
For instance, if you invest one lakh rupees today, you will receive Rs. 1,16 lakh at 7.5% interest after two years. Similar to that, if you invest 1.5 lakh rupees, you will receive 1.74 lakh at maturity. They will receive Rs 2.32 lakh for their investment of Rs 2 lakh. For withdrawal of the sum at maturity, Form-2 must be completed.
After the account has been open for a year, partial withdrawals are permitted. But the maximum amount that can be withdrawn from the account is only 40% of the original deposit.
The account may also be cancelled if the account holder passes away or is given a life-threatening illness diagnosis. The required paperwork must be submitted for this.
After six months, the account may also be closed without cause. However, in this situation, the interest rate will be lowered to 5.5%.
Most small savings plans typically offer tax advantages. Mahila Samman Savings Certificate does not offer this relief. TDS deduction has, however, been exempted. Your overall income will be increased by the interest earnings. And tax will be collected in accordance with the tax bracket you are in.
Women who wish to invest with guaranteed returns and no risk should choose the programme. Form-1 and KYC documents must be completed in order to open an account under this scheme. You will also need to submit copies of your Aadhaar card, PAN card, and address verification.
