Tax Deduction at Source (TDS) in respect of Mahila Samman Savings Certificate (MSSC) – SB Order No. 13/2023 issued by the Department of Posts on 31st May 2023
The Department of Posts issued SB Order No. 13/2023 on May 31, 2023, regarding Tax Deduction at Source (TDS) for the Mahila Samman Savings Certificate (MSSC). The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes has notified that TDS under Section 194A of the Income Tax Act, 1961 is applicable to the interest income earned through the MSSC scheme. The TDS deduction is also applicable to the Senior Citizens Savings Scheme (SCSS). If the total interest amount credited or paid to the payee in a financial year exceeds INR 50,000 for a senior citizen or INR 40,000 for others, TDS is required to be deducted.
SB Order No.13/2023
No. FS-13/1/2023-FS-DOP
Government of India
Ministry of Communications
Department of Posts
(F.S. Division)
Dak Bhawan, New Delhi — 110001
Dated: 31.05.2023
To
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 ₹ |
| Senior Citizen (individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.) | 50,000 |
| Others | 40,000 |
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.
Yours faithfully
(T C VIJAYAN)
Asst. Director (SB-I)
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 16th May 2023
INCOME-TAX
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
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