MAHILA SAMMAN SAVINGS SCHEME

The investment under MSSC does not qualify for rebate under Section-80-C of Income Tax Act.  The interest earned is also taxable.  Hence TDS should be deducted from the Account holder for the interest earned/paid.

If the aggregate amount of interest paid to the depositor in respect of  Senior Citizens Scheme accounts and MSSC accounts  in a Financial Year exceeds Rs.40000/- (Rs.50000/- for Senior Citizens), TDS should be deducted.