ITR

What Are the Income Tax Benefits for Women?

This is a complete guide for the income tax slab for women. And it also explains women's benefits from income tax.

Income tax is one of those things female taxpayers have enjoyed very exemption in the past. They have very many tax deductions at that time. But after 2012-13, things have got changed. Since then, a woman’s income has been considered equal to a man’s. So, there are no women’s benefits for income tax. 

Now, any benefit on tax that a woman gets is enjoyed by a man of the same income criteria. In India, the Income-tax distribution is divided only based on age and income. In India, nowadays, if you have an increasing income, then your income tax will increase proportionally. And as your age increases, your income tax will get reduced. 

Your income tax is directly proportional to your income and inversely proportional to your age. Currently, in India, age-wise, there are three classifications for Income tax filing. These are:

  1. People under the age of 60 years 
  2. People between the age of 60 to 80 years
  3. People above the age of 80 years

Let us understand the income tax slab for women in India as per these age criteria.

Detailed Income Tax Slab

The income tax slab means the payable tax according to your age and your total taxable income. In every Union budget, there is a change in tax rates and rules. But old tax rates and regimes are still active when these are not mentioned clearly. So let’s take a look at the tax slab for women. 

Income Tax Distribution For Women (Below 60 Years of Age)

Income Tax Slab Rate of Income Tax
Up to Rs 2,50,000 Nil
Rs 2,50,001 to Rs 5,00,000 5% above Rs 2,50,000
Rs 5,00,001 to Rs 7,50,000 Rs 12,500 + 10% above Rs 5,00,000
Rs 7,50,001 to Rs 10,00,000 Rs 37,500 + 15% above Rs 7,50,000
Rs 10,00,001 to Rs 12,50,000 Rs 75,000 + 20% above Rs 10,00,000
Rs 12,50,001 to Rs 15,00,000 Rs 1,25,000 + 25% above Rs 12,50,000
Above Rs 15,00,000 Rs 1,87,500 + 30% above Rs 15,00,000

Income Tax Distribution for Women (Between 60 to 80 years of age)

Income Tax Slabs Rate of Income Tax
Up to Rs 2,50,000 Nil
Rs 2,50,001 to Rs 3,00,000 5% above Rs 2,50,000
Rs 3,00,001 to Rs 5,00,000
Rs 5,00,001 to Rs 7,50,000 Rs 12,500 + 10% above Rs 5,00,000
Rs 7,50,001 to Rs 10,00,000 Rs 37,500 + 15% above Rs 7,50,000
Rs 10,00,001 to Rs 12,50,000 Rs 75,000 + 20% above Rs 10,00,000
Rs 12,50,001 to Rs 15,00,000 Rs 1,25,000 + 25% above Rs 12,50,000
Above Rs 15,00,000 Rs 1,87,500 + 30% above Rs 15,00,000

Income Tax Distribution for Women (above 80 years of age)

Income Tax Slabs Rate of Income Tax
Up to Rs 2,50,000 Nil
Rs 2,50,001 to Rs 5,00,000 5% above Rs 2,50,000
Rs 5,00,001 to Rs 7,50,000 Rs 12,500 + 10% above Rs 5,00,000
Rs 7,50,001 to Rs 10,00,000 Rs 37,500 + 15% above Rs 7,50,000
Rs 10,00,001 to Rs 12,50,000 Rs 75,000 + 20% above Rs 10,00,000
Rs 12,50,001 to Rs 15,00,000 Rs 1,25,000 + 25% above Rs 12,50,000
Above Rs 15,00,000 Rs 1,87,500 + 30% above Rs 15,00,000

Additional Surcharge for Women 

According to the Income Tax Act, if any women have an annual income of more than fifty lakh rupees, then she will have to pay an additional surcharge above other than their tax slab. Here is the additional surcharge listed below according to your annual income. 

Annual Taxable Income Additional Surcharge Rate
Above Rs 50 lakh to Rs 1 crore 10%
Above Rs 1 crore to Rs 2 crore 15%
Above Rs 2 crore to Rs 5 crore 25%
Above Rs 5 crore 37%

How to calculate Taxable Income

You may be confused about how to calculate your real taxable income. Maybe you do not know about something you are not considering as your taxable income. So, in India, there are five significant income categories considered to be the taxable income source. These five types of income are mentioned below:

  1. Income from your salary: Anything that you earn from your job and comes to your home as your salary is considered under taxable income. Every salaried income will be considered under your taxable income, whether you have multiple or part-time jobs.
  2. Income from Business or Profession: If you have a business like a shop, firm or similar, you get some income. Such income streams are also considered in your taxable income. And if you have an income stream from a self-employed manner, you use your skills for earning. Such as, if you do freelancing or do some work that is not considered under job and business, then its income stream will be considered under the income from your profession. These incomes are also taxable.
  3. Income from house/property: If you have tenants at some of your properties or have given your property on rent, this income stream is also considered taxable.
  4. Income from capital gains: If you have sold any of your capital or assets like stocks, bonds, real estate, etc., their profits will also be considered under your taxable income.
  5. Income from other sources, including interests on FDs: If you have any gifts other than your marriage and any interest you have earned on your deposits, all these are included under your taxable income. 

Income Tax Exemptions 

So, the Income Tax Act has exempted women and all other taxpayers. Anyone can enjoy tax benefits on these exemptions and save some money. These exemptions are specially given by the government so that a habit of saving money can be created in people.

Some of the tax benefits mentioned below are under section 80 of the Income Tax Act. 

  • Section 80C – You can get an exemption of upto 1.5 lakh on the followings:
    • Life insurance premium
    • Provident Fund
    • National Savings Certificate
    • Housing Loan Principal
    • Tuition fees
    • Subscription to certain equity shares
    • Tax Saver 5-year FD
    • National Pension Scheme
    • EPF
    • Sukanya Samriddhi Yojana
  • Section 80TTA – You can get an exemption of around 10,000 on the interest you would get from various bank accounts.
  • Section 80D – You can get tax benefits on the health insurance premium and preventive health check-ups. The detailed distribution is mentioned below
    • 25,000 for self, spouse, and children.
    • 25,000 of additional exemption for parents.
    • 50,000 Rs of additional exemption for parents (above the age of 60 years).
  • Section 80E – According to this, a complete exemption is given on the total interest paid on an education loan. And there is no limit to this exemption. 

Conclusion

There are many more income tax exemptions given in the Income Tax Act, from which you can get benefits. These are some primary sections providing significant exemptions on the Income tax slab. If you have any more questions related to the ITR filing: https://eportal.incometax.gov.in/ for women in India, you can get in touch with the experts of Vakilsearch.

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