Tax Deduction at Source (TDS) in respect of Mahila Samman Savings Certificate (MSSC) – SB Order No. 13/2023
SB Order No. 13 / 2023
Government of India
Ministry of Communications
Department of Posts
Dak Bhawan, New Delhi — 110001
All Head of Circles / Regions
Subject: Applicability of Tax Deduction at Source (TDS) in respect of Mahila Samman Savings Certificate (MSSC) — Regarding.
Mahila Samman Savings Certificate (MSSC) scheme has been notified as a scheme in which TDS under Section 194A of Income Tax Act, 1961 (43 of 1961) vide Notification No. S.O. 2189(E) dated 16th May 2023 issued by Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. A copy of the notification is attached herewith.
2. Accordingly, TDS deduction under Section 194A (Tax deduction on Interest other than “Interest on securities”) is applicable on the interest income earned through the following schemes notified by Central Government.
(i). Senior Citizens Savings Scheme (SCSS)
(ii). Mahila Samman Savings Certificate (MSSC)
3. Hence, if the aggregate amount of interest credited or paid to the payee in respect of SCSS and MSSC schemes during a Financial Year exceeds the following threshold limit, TDS is required to be deducted.
|Payee category||Threshold limit in ₹|
(individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.)
4. This may be circulated to all the Offices for information and wide publicity among the public.
5. This is issued with the approval of competent authority.
Encl: As above.
(T C VIJAYAN)
Asst. Director (SB-I)
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
New Delhi, the 16th May, 2023
S.O. 2189(E).—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.
2. This notification shall come into force from the date of its publication in the Official Gazette.
[Notification No. 27/2023/F. No. 370142/11/2023-TPL]
MRINALINI KAUR SAPRA, Director