The Central Board of Direct taxes vide notification dated 16th May, 2023 has provided an income tax exemption to Mahila Samman Savings Certificate, 2023. The Income Tax Act, 1961 provides that any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force.
However, as per the notification, ten thousand rupees, on any deposit with post office under the Scheme namely the Mahila Samman Savings Certificate, 2023 shall be exempted from this requirement.
