In today’s time, nearly all women from different age groups either have an office job or own a business, pay taxes as per the existing tax laws, and reap standard benefits. For example, with a life insurance plan, you can avail of tax* deductions up to ₹1.5 Lakh on the premiums paid towards the policy as per Section 80C of the Income Tax Act. Moreover, the death benefits of a life insurance plan are also eligible for tax^* exemptions under Section 10(10D) of the Income Tax Act.

For decades, women have been campaigning to get equal rights, equal pay, and equal opportunities as men have. While the journey is long and we are still on our way to equal rights, there are some specially curated tax benefits for women.

To get a glimpse of the income tax benefit for women, let’s first take a look at the tax slabs for women taxpayers, where the tax* amount also includes a 4% cess.

Income Tax Slab for Women Taxpayers below 60 years - FY 2019-20

Income	Tax Rates
Up to ₹2.5 Lakh	None
₹2,50,001 - ₹5 Lakh	5% of the total income above ₹2,50,001
₹5,00,001 - ₹10 Lakh	₹12,500 + 20% of the total income above ₹5 Lakh
Exceeding ₹10,00,001	₹1,12,500 + 30% of the total income above ₹10 Lakh

 

Income Tax Slab for Women above 60 years - FY 2019-20

Income	Tax Rates
Up to ₹3 Lakh	None
₹3,00,001 - ₹5 Lakh	5% of the total income above
₹5,00,001 - ₹10 Lakh	₹10,000 + 20% of the total income above ₹5 Lakh
Exceeding ₹10,00,001	₹1,10,000 + 30% of the total income above ₹10 Lakh

 

Income Tax Slab for Women above 80 years - FY 2019-20

Income	Tax Rates
Up to ₹5 Lakh	None
₹5,00,001 - ₹10 Lakh	20% of the total income above ₹5 Lakh
Exceeding ₹10,00,001	₹1,00,000 + 30% of the total income above ₹10 Lakh

After understanding the tax* rates applicable for women, read on to know about the tax benefit for women in India on various investments and instruments:

 

• Life Insurance Plans

Life insurance plans are a must-have for women, not only because of the tax benefits for women but also for safeguarding their families. Depending on the type of life insurance policy, you can protect your family’s financial future, plan your future commitments, fulfil upcoming monetary obligations or invest in other avenues to grow your wealth.

If the expense of premium payments is a cause of concern, Tata AIA life insurance policy plans have you covered with life insurance premium rates for women policyholders so that you can avail of a life insurance plan of your choice!

 

• Sukanya Samriddhi Yojana

If you seek tax-free returns from an investment for your daughter’s benefit, the Sukanya Samriddhi Yojana carries an EEE or exempt-exempt-exempt status. Whether you choose to invest ₹10,000 or ₹1.5 Lakh, all the contributions towards the scheme are tax-deductible, and the maturity proceeds are exempt from taxes. Once your child turns 18 years old, she can withdraw up to 50% of the funds and then enjoy the maturity benefits from the scheme once she is 21 years of age.

 

• Home Loan Tax benefit for Women in India

Buying a home is a huge expense in itself and for most women, having their own home between the age of 30-40 years is a dream come true! If you have availed of a loan independently or with your spouse, the principal amount and the interest of the loan can help you save tax, either on your tax filing or that of both spouses. Under Section 24 of the Income Tax Act, you can claim up to ₹2 Lakh on the interest repayments, while the principal repayments are tax-deductible up to ₹1.5 Lakh.

 

• Rent Allowance Benefit for Women in Income Tax

Even if you don’t own a house as per your targets does not mean you cannot save money on your taxes. As a salaried woman living in a rented home, you can claim deductions on home rent allowance (HRA) unless you have opted for the new tax regime from FY 2020-21 (AY 2021-22).

However, suppose you do not receive an HRA, under Section 80GG you can still claim deductions if you are salaried or self-employed or do not own any residential property in the area you currently reside. Furthermore, even if you live with your parents and receive an HRA, you can pay them the rent, claim the deductions, and help them save tax on family income!

 

• Tax* Benefits on Education Loans

You never stop learning, and it is great if you want to pursue a specialised course or complete higher education, no matter your age! An education loan can help you fulfil your dreams and sharpen your skills.

Even if you have taken the loan for your husband or your children, you can still claim a deduction under Section 80E, with no limit on the deduction amount!

Each year, for up to 8 years, you can continue claiming a tax deduction on the education loan or until the time the interest repayment is complete.

When Should You File Your Tax Returns?

In India, the due date for filing your income tax returns is 31^st July 2021 or at the end of the financial year for which the taxes need to be filed.

Conclusion

There is a possibility that you may not have sufficient disposable income at hand or may have opted to take a sabbatical from your job. During such times, you can continue saving your money and still benefit from tax deductions. With a savings account from a bank, you can claim deductions of up to ₹10,000 on the interest earned and also avail of special facilities like zero balance accounts at some banks.

There is no difference in the taxes that men and women pay in India, as a woman, it always helps to delve deeper into tax*-saving techniques so that you can save better for other important financial commitments or simply indulge yourself with the savings!

L&C/Advt/2022/Mar/0586