TDS Will Not Be Attracted On Interest Below Rs. 40,000 Earned From Mahila Samman Certificate: CBDT

The Central Board of Direct Taxes (CBDT) has notified that TDS will not be attracted on interest below Rs. 40,000 earned from Mahila Samman Certificate.

“In exercise of the powers 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 notifies that the Scheme namely the Mahila Samman Savings Certificate, 2023, made in exercise of the powers conferred by section 3A of the Government Savings Promotion Act, 1873 (5 of 1873) and notified vide notification number G.S.R. 237(E) dated the 31st March, 2023 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.

Section 194A deals with the provisions relating to TDS on interest other than on securities. Tax is to be deducted under section 194A if interest (other than interest on securities) is paid to a resident.

In her Budget Speech for 2023–2024, Union Finance Minister Smt. Nirmala Sitharaman 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 introduced. The Mahila Samman Saving Certificate, 2023, is available from 01/04/2023 in the Post Offices at an interest rate of 7.5% p.a.

Notification No. 27/2023

Date: 16/05/2023

Click Here To Read The Notification