In this article we shall take a comprehensive look at taxation for working women.
India is notorious for its patriarchal norms and social mindset wherein women are not given the same status as a man in social standing. They are categorised as dependants to the male members of the society. It is in the spirit of fighting this mindset that the Indian Government has been taking important steps to empower women over the years.
One such step has been to offer certain monetary benefits and concessions to them. These include stamp duty concession, property tax rebate, credit subsidy for the house, the reduced interest rate on home loans, and so on. Till the Financial Year 2011-12, separate income Tax Slabs were in operation for both men and women.
As per the tax slab for women in India, women were allowed to have a higher basic exemption limit while paying income tax. Therefore, women used to pay slightly less income tax, as compared to men. However, from FY 2012-13 onwards, the Government has discarded this system and introduced common income tax slabs for both women and men. So now, there is no separate income tax slab for women and women enjoy no specific income tax exemptions as such.
Tax Slab For Women In 2021-22
Income tax slabs specify applicable tax rates for a taxpayer based on his age and income. Three categories have been defined for individual taxpayers-
- Individuals (below 60 years of age)- This includes both resident and non-resident Indians
- Resident senior citizens – Individuals over 60 years but below 80 years of age)
- Resident super senior citizens – Individuals over the age of 80 years and above)
Below is the different income tax slab for women applicable for the FY 2021-22, in all the above-mentioned categories-
Income tax slab for women in India (below 60 years of age)
| Taxable income range | Income Tax rate |
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001- Rs. 5,00,000 | 5% |
| Rs. 5,00,001- Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
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Income Tax Slab For Women 2021-22 India
( For Senior Citizens- 60 years or more but below 80 years at any time during the previous year)
| Taxable income range | Income Tax rate |
| Up to Rs. 3,00,000 | Nil |
| Rs. 3,00,001 – Rs. 5,00,000 | 5% |
| Rs. 5,00,001- Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Income Tax Slab For Women
( For Super Senior Citizens- 80 years or more at any time during the previous year)
| Taxable income range | Income Tax rate |
| Up to Rs. 5,00,000 | Nil |
| Rs. 5,00,001- Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
It is important to note here that all individual taxpayers in the above-mentioned categories will be charged an additional 4% as health & education cess. This will apply to the total taxable amount due.
Individuals having a net taxable income of up to Rs 5 lakh can avail a standard deduction of Rs 12,500, as per section 87 A.
Income Tax Slab For Companies For 2021-22
The income tax slab for domestic companies are given below-
| Turnover particulars | Tax rate |
| Gross turnover up to Rs 400 Cr | 25% |
| Gross turnover beyond Rs 400 Cr | 30% |
| If the company opts for Section 115 BA | 25% |
| If the company opts for Section 115 BAA | 22% |
| If the company opts for Section 115 BAB | 15% |
What Are The Tax Slabs For GST?
The Goods and Service Tax (GST) is a destination-based indirect tax charged on the supply of goods and services. For the smooth operation of the GST regime, different goods and services have been categorised in different tax slabs.
These tax slabs for GST are structured in such a way that food items and essential services are taxed lower. Accordingly, luxury services and products are placed in higher tax slabs.
The GST Council has devised 4 tax slabs for GST, namely- 5 %, 12 %, 18 & and 28%. Over 500 services and 1300 goods have been categorised in these slabs. As exceptions, gold is kept at 3% and rough precious & semi-precious stones are placed at 0.25% rate slabs respectively.
The GST Council keeps moving items among these tax slabs from time to time, depending on suggestions received or demands by situations.
Conclusion
The Indian taxation system is one of the most complex systems in the world. The diversity of the country has made it hard to create a simple system that is fair for all. There are several factors that are taken into consideration when contemplating tax policies in order to make it as inclusive and fair as possible to all concerned parties. This is why the system is quite complex to understand on the face of it. And while the steps taken to reduce tax liability on women are positive in the direction of empowering women to rise to the same level as men, the technical aspects of the tax ecosystem can seem complicated. So it is always advisable to seek counsel and advice from experienced professionals who are aware of the technicalities and the know-hows of the income tax system. If you have any other tax related queries or require assistance in tax related matters, then get in touch with us and our team of experts will help you clarify your queries and help you with your requirements.
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