How to Close a Mahila Samman Savings Certificate Account Prematurely in Case of Death

Key Highlights :

1. The Mahila Samman Savings Certificate is a scheme that aids women and girls in planning their financial future.

2. The one-time small savings plan was introduced to commemorate Azadi Ka Amrit Mahotsav .

3. The Mahila Samman Savings Certificate scheme will be valid till March 31 2025.

4. The two-year tenor scheme provides a fixed interest of 7.5 percent.

5. The interest will be compounded quarterly.

6. There are options for flexible investment and partial withdrawal.

7. Who is eligible for the Mahila Samman Savings Certificate? The scheme can be opened by any woman. Women can also open the scheme on behalf of a girl.

8. The minimum investment amount is Rs 1,000. The maximum limit is Rs 2 lakh.

9. After the scheme matures, the investor can request the funds through a Form-2 application.

10. The account holder can withdraw up to 40 percent of the account balance one year after the account’s opening date.

11. Is the scheme eligible for tax benefit under Section 80C? Under Section 80C of the Income Tax Act, The Mahila Samman Savings Certificate is not eligible for tax rebate.

12. Since the Mahila Samman Savings Certificate is basically a fixed deposit, it will come under “income from other taxes”.

13. The amount of tax due will be calculated on the basis of a taxpayer’s gross income, including the interest from term deposits.

14. As the scheme has a limit of Rs 2 lakh and the interest is 7.5 percent, there is no chance that TDS will be deducted on the Mahila Samman Savings Certificate if this is your only investment. But the tax may depend on your income slab and other factors.

15. To invest in the scheme: go to your local post office or bank branch which offers the scheme and obtain the Mahila Samman Bachat Patra Yojana form.

16. Fill the application with the required information and submit it after attaching the relevant documentation.

17. Select the amount of the deposit.

18. Deposit the money through a cheque or cash.

19. A certificate will be issued by the bank/ post office as proof of your investment.

20. The scheme can be closed prematurely in case of the death of the account holder. The Mahila Samman Savings Certificate account can also be closed prematurely on compassionate grounds such as life-threatening disease of the account holder or the death of the guardian.

21. The account can also be closed six months after the opening date before mentioning any reason, but the interest paid will be 2 percent less.

     The Mahila Samman Savings Certificate is a scheme that aids women and girls in planning their financial future. The one-time small savings plan was introduced to commemorate Azadi Ka Amrit Mahotsav. The two-year tenor scheme provides a fixed interest of 7.5 percent. The interest will be compounded quarterly. There are options for flexible investment and partial withdrawal. Any woman or girl can open the scheme with a minimum investment of Rs 1,000 and a maximum limit of Rs 2 lakh. After the scheme matures, the investor can request the funds through a Form-2 application. The account holder can withdraw up to 40 percent of the account balance one year after the account’s opening date.

     Under Section 80C of the Income Tax Act, The Mahila Samman Savings Certificate is not eligible for tax rebate. Since the Mahila Samman Savings Certificate is basically a fixed deposit, it will come under “income from other taxes”. The amount of tax due will be calculated on the basis of a taxpayer’s gross income, including the interest from term deposits. As the scheme has a limit of Rs 2 lakh and the interest is 7.5 percent, there is no chance that TDS will be deducted on the Mahila Samman Savings Certificate if this is your only investment. But the tax may depend on your income slab and other factors.

     The Mahila Samman Savings Certificate account can be closed prematurely in case of the death of the account holder. The account can also be closed prematurely on compassionate grounds such as life-threatening disease of the account holder or the death of the guardian. The account can also be closed six months after the opening date before mentioning any reason, but the interest paid will be 2 percent less.

     To close a Mahila Samman Savings Certificate account prematurely due to the death of the account holder, the following steps must be followed:

     • The nominee or legal heir of the account holder needs to submit the death certificate of the account holder.

     • The nominee or legal heir of the account holder needs to submit a copy of the Mahila Samman Savings Certificate.

     • The nominee or legal heir of the account holder needs to submit a letter of indemnity.

     • The nominee or legal heir of the account holder needs to submit a request letter for premature closure of the account.

     • The nominee or legal heir of the account holder needs to submit a copy of the PAN card.

     • The nominee or legal heir of the account holder needs to submit a copy of the Aadhaar card.

     Once all the documents are submitted, the bank/ post office will verify the documents and process the request for premature closure of the Mahila Samman Savings Certificate account. The amount will be paid out to the nominee or legal heir of the account holder.

     The Mahila Samman Savings Certificate is a great way for women and girls to plan their financial future. The scheme provides a fixed interest rate and flexible investment options. However, in case of the death of the account holder, the Mahila Samman Savings Certificate account can be closed prematurely. The nominee or legal heir of the account holder needs to submit the required documents and the amount will be paid out to them.

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