The Indian Ministry of Communications, Department of Posts, has issued SB Order No. 13/2023 regarding the applicability of Tax Deduction at Source (TDS) in respect of the Mahila Samman Savings Certificate (MSSC) scheme. The scheme has been designated as one in which TDS under Section 194A of the Income Tax Act, 1961 is applicable.
TDS deduction is required if the aggregate amount of interest credited or paid to the payee in the MSSC scheme, along with the Senior Citizens Savings Scheme (SCSS), exceeds the specified threshold limit. The order instructs all Head of Circles/Regions to disseminate this information widely among the public. The order is effective from the date of issuance.
Applicability of TDS in respect of MSSC
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.
- 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)
- 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)