Central Board of Direct Taxes: TDS Will Not Be Attracted On Interest Below Rs. 40,000 Earned From Mahila Samman Certificate

The Central Board of Direct Taxes, CBDT in the case observed and has notified that the TDS will not be attracted on interest below an amount of Rs. 40,000 earned from Mahila Samman Certificate.

The notification issued stated that with regards to the power conferred by sub-clause (c) of clause (i) of sub-section (3) of section 194A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notified that the Scheme namely the Mahila Samman Savings Certificate, 2023, which is being made in exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 and has notified vide notification dated 31.03.2023 wherein it published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), shall be a Scheme framed for the purposes of said sub-clause,” the notification read.It has also been stated under section 19A wherein it deals with the provisions which related to TDS on interest other than on securities. Therefore, the tax in the case is to be deducted under section 194A if interest (other than interest on securities) is paid to a resident.

Therefore, in the budget speech for 2023–2024, Union Finance Minister Smt. Nirmala Sitharaman wherein it introduced the Mahila Samman Saving Certificate, a new micro-savings program for women and girls. For the Azadi ka Amrit Mahotsav, the Mahila Samman Savings Certificate program was being introduced. Thus, the Mahila Samman Saving Certificate, 2023, is now being available from April, 04, 2023 in the Post Offices at an interest rate of 7.5% p.a.