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Income Tax Slabs for Women in India – Exemption and Rebates

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The women workforce in India has been steadily rising over the years. An increasing number of women are now employed and contribute towards household expenses just like men. To further encourage and empower women, the government also offers a host of tax benefits.

Here are some of the most important things you should know about tax benefits available for women in India:

1. Income Tax Slabs for Women

Until 2012-13, men and women had different tax slabs; women had lower tax rates. However, the tax slabs are now the same for men and women. In Budget 2020, the government proposed a new concessional tax regime, which gave taxpayers the option to pay taxes as per the old or new tax regime.

Here’s a quick overview of the old tax regime:

Income Tax Slabs Tax Rate
Up to Rs. 2.5 lakhs Nil
Rs. 2.5 lakhs to Rs. 5 lakhs 5%
Rs. 5 lakhs to Rs. 10 lakhs 20%
Rs. 10 lakhs and above 30%

2. Tax Slabs Under New Concessional Tax Regime

The new tax regime has lower tax rates for most slabs, but taxpayers cannot benefit from most of the deductions and exemptions they were entitled to get under the older regime.

The following table explains the tax rate under different tax slab under the new tax regime:

Income Tax Slabs Tax Rate
Up to Rs. 2.5 lakhs Nil
Rs. 2.5 lakhs to Rs. 5 lakhs 5%
Rs. 5 lakhs to Rs. 7.5 lakhs 10%
Rs. 7.5 lakhs to Rs. 10 lakhs 15%
Rs. 10 lakhs to Rs. 12.5 lakhs 20%
Rs. 12.5 lakhs to Rs. 15 lakhs 25%
Rs. 15 lakhs and above 30%

Health and education cess @4% of the income tax is also applicable.

  1. Tax Slabs for Senior and Super Senior Women

The tax slabs also vary for women below 60 years, between 60 to 80 years (seniors), and above 80 years (super seniors). Here are the new tax slabs for senior and super senior women:

  • Senior Women
Income Tax Slabs Tax Rate
Up to Rs. 2.5 lakhs Nil
Rs 2.5 lakhs to Rs 3 lakhs 5%
Rs. 3 lakhs to Rs. 5 lakhs 5%
Rs. 5 lakhs to Rs. 7.5 lakhs 10%
Rs. 7.5 lakhs to Rs. 10 lakhs 15%
Rs. 10 lakhs to Rs. 12.5 lakhs 20%
Rs. 12.5 lakhs to Rs. 15 lakhs 25%
Rs. 15 lakhs and above 30%

  • Super Senior Women
Income Tax Slabs Tax Rate
Up to Rs. 2.5 lakhs Nil
Rs 2.5 lakhs to Rs 5 lakhs 5%
Rs. 5 lakhs to Rs. 7.5 lakhs 10%
Rs. 7.5 lakhs to Rs. 10 lakhs 15%
Rs. 10 lakhs to Rs. 12.5 lakhs 20%
Rs. 12.5 lakhs to Rs. 15 lakhs 25%
Rs. 15 lakhs and above 30%

Health and education cess @4% of the income tax is also applicable.

3. Tax Deductions Available for Women

Here are some of the deductions that women taxpayers can avail to reduce their tax liabilities:

  • Section 80C:Deductions of up to Rs. 1.5 lakhs on investments in Equity Linked Savings Scheme (ELSS), National Pension Scheme (NPS), 5-Year Tax-Saving Fixed Deposit, etc., or principal repayment of home loan.
  • Section 80D:Deduction of up to Rs. 25,000 on health insurance premiums paid for self and/or family. Deduction of up to Rs. 50,000 if senior citizen parents are covered in the policy.
  • Section 80E:Deduction on interest paid on education loan with no upper limit.
  • Section 24:Deduction of up to Rs. 2 lakhs on interest paid towards a home loan.

 4.  Tax Rebates Available for Women

Under Section 87A of the IT Act, every taxpayer, be it man or woman, is eligible for a tax rebate of up to ₹12,500, if the net taxable income is up to ₹5 lakhs in the financial year. The rebate is available under both old and new tax regimes.

Apart from this, there is no additional income tax rebate exclusively available to women.

The deductions, exemptions, and other policies launched by the government can help women taxpayers live a more confident and independent life. There are many savings and investment options that can help taxpayers reduce their tax liabilities.

Look for a reputable insurance provider to know more about such products and make the best use of the available tax benefits.

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