Income Tax Slab for Women: Guide to Exemptions and Rebates

By Okbima 06 Jun 2023 173
Income Tax Slab for Women: Guide to Exemptions and Rebates

 

Introduction

The government requires income tax from any individual whose earnings exceed a particular threshold in India. The tax payment is made in accordance with the government's recently stated tax slabs for women. Nevertheless, many female taxpayers believe that their tax exemption is more significant than that of males. Understanding the income tax brackets, discounts, and exemption amounts will help clear the uncertainty.

Are Men's and Women's Income Tax Slabs Distinct?

Indian taxpayers of both genders currently pay income taxes in the same brackets. Women taxpayers used to have a more significant tax exemption ceiling until 2012–2013, but that has now been eliminated. As a result, the tax exemption thresholds and refunds are now the same for both sexes.

On the other hand, the demographics and earnings tax slabs for each person vary. While an individual's income affects how much income tax they owe, their age has no bearing on this relationship. Hence, the tax a taxpayer must pay will increase as their income rises. Conversely, the amount of income tax that must be paid also decreases with the taxpayer's age.

According to their age, all Indian taxpayers have been split into three groups:

Age groups younger than 60

Those in their 60s or 80s are considered seniors.

Those who are elderly or are beyond 80

Get Some Tax-Saving Bonuses While Using These Advantages

Here is how you can maximize your earnings while saving on taxes.

 Buy Health Insurance

You can deal with upcoming medical expenses and reduce your tax burden by investing in a quality health insurance plan for women. In line with Section 80D of the IT Act, you can deduct as much as Rs. 25,000 per year from your income for the premiums you pay for health insurance for you, your spouse, your dependent children, and your elderly parents. In addition, the insurance premiums you spend for your elderly parents' policies are also eligible for a claim here, up to an extra Rs.

Spend Less While Paying Down Your Mortgage

Both the interest and principal portions of your mortgage are tax deductible. You can claim these tax deductions if you and your partner have a combined house loan. In addition, you may also deduct up to Rs. 1.5 lakh of principal repayments made under 80c of the IT Act and up to Rs. 2 lakhs of interest repayments made under Section 24.

As a first-time house buyer, you may also benefit from the tax advantages of home loans since you can deduct an extra Rs. 50,000 from your interest payments under Section 80EEE. Take advantage of a tailored new mortgage for women with a maximum loan amount of Rs. 5 crore or higher and a maximum loan term of 30 years at low-interest rates to profit from these advantages fully.

With A House Rent Allowance, You Can Reduce Your Taxes

While renting a home, salaried individuals are eligible to deduct the house rent allowance. Your base pay, the HRA amount set by your company, any rental income you may have, and other factors will determine your tax advantages. Even if your company doesn't offer you a housing reimbursement allowance (HRA) or if you work for yourself, you can still request one. In this situation, all you have to do to qualify for the deduction is to include the rent claim when submitting your taxes covered under the tax slab for women.

The Sukanya Samridhi Yojana Allows For Tax-Free Returns

Investments in the Sukanya Samridhi Yojana, which has an exempt-exempt (EEE) status, are permitted if you have a girl under the age of ten. The maturity amount of this plan is not taxed, and all of your contributions are tax-deductible. With this plan, you can spend as little as Rs. 1000 or as much as Rs. 1.5 lakh. After your daughter turns 21, this account will reach maturity. When she turns 18, you can take a 50% withdrawal.

 With A Student Loan, Reduce Your Tax Liability

Suppose you have taken out financial assistance for university education for you, your partner, your children, or anybody else for whom you are the local guardian. In that case, you can deduct the interest payments under Section 80E of the Income Tax Act. This deduction is allowable for up to eight years or until all interest has been paid, whichever comes first. You may deduct an unlimited amount of money under this Act in addition.

Income Tax Slab (AY 2022-23) For Women

See the income tax brackets for women of various ages for the evaluation year 2022–2023 under the previous and new tax systems:

During the fiscal year 2022–2023, the following income tax brackets for women will apply to women under 60 and nonresident women:

Income range

Income tax rate

Up to Rs. 2,50,000
Nil

Rs. 2,50,001 to Rs. 5,00,000

5% of the total income which surpasses Rs. 2,50,000

Rs. 5,00,001 to Rs. 10,00,000

Rs. 12,500 + 20% on income surpassing Rs. 5,00,000

Above Rs. 10,00,000 

Rs. 1,12,500 + 30% on income surpassing Rs. 10,00,000

For senior women over 60, there is a special income tax bracket for women:

Income slab (in Rs.)

Income tax rate

Up to Rs. 3,00,000

Nil

3,00,001 to 5,00,000

5% of income going beyond Rs. 3,00,000

5,00,001 to 10,00,000

Rs. 10,000 + 20% of income surpassing Rs. 5,00,000 

Above 10,00,000

Rs. 1,10,000 + 30% of income surpassing Rs. 10,00,000

Age-related income tax rates for women who are super senior citizens and above 80:

Income slab (in Rs.)

Income tax rate

Up to Rs. 5,00,000

Nil

5,00,001 to 10,00,000

20% of income going beyond Rs. 5,00,000

Above 10,00,000

Rs. 1,00,000 + 30% of income over Rs. 10,00,000

As a contrast, women (especially seniors and very senior people) may choose the new tax system, which imposes a reduced rate of tax. However, to take advantage of the benefit, a number of exemptions and perks must be given up. The following is the tax slab for women rate under the new tax system:

Income range

Income tax rate

Up to Rs. 2,50,000

Nil

Rs. 2,50,000 to Rs. 5,00,000

5% on income surpassing Rs. 2,50,000

Rs. 5,00,000 to Rs. 7,50,000

Rs. 12,500 + 10% of income surpassing Rs. 5,00,000

Rs. 7,50,000 to Rs. 10,00,000

Rs. 37,500 + 15% of the income surpassing Rs. 7,50,000

Rs. 10,00,000 to Rs. 12,50,000

Rs. 75,000 + 20% of the income surpassing Rs. 10,00,00

Rs. 12,50,000 to Rs. 15,00,000

Rs. 1,25,000 + 25% of the income surpassing Rs. 12,50,000

Above Rs. 15,00,000

Rs. 1,87,500 + 30% of the income surpassing Rs. 15,00,000


 

The income tax also carries a 4% education and health cess in addition to the rates mentioned above. A tax rebate of Rs. 12,500 is available to women in the lowest income class who earn as much as Rs. 5 lakhs.

If an individual's income surpasses that amount, surcharge charges will also apply. On top of the overall tax, a surcharge is charged.

Total income 

Surcharge rate

> Rs. 50 Lakhs

10% 

> Rs. 1 crore

15%

> Rs. 2 crores

25%

> Rs. 5 crores

37%

Tax Advantages and Exemptions for Women Taxpayers in India

Women can reduce their tax burden by utilizing certain of the Act's tax incentives and refunds. Women taxpayers are eligible for the following income tax deductions and benefits:

80C 

Life insurance premium

Provident Fund

National Savings Certificate

 Housing Loan Principal

Tuition fees

Subscription to certain equity shares

Other items

Combined limit of Rs 1,50,000

80CCC 

Annuity plan towards Pension Scheme

80CCD (1)
Pension Scheme of the Central Government
 
80CCD(1B) 

Central Government Pension Plan without regard to 80CCD(1) deductions 

Rs 50,000

80D

The premium for health insurance for women

Preventive health check-ups

Rs 25,000 for self/spouse/dependents and parents

Rs 50,000 (for senior citizens)

Rs 5,000 (for preventative health check-up contained in the above limits)

In the absence of paying a health insurance subscription, senior citizen medical costs - Rs 50,000 for self/spouse/dependents and parents

80DD 

Medical care, support for a dependant who is disabled, or any payments made under applicable authorized programs 

Rs 75,000

Rs 1,25,000 if the person has a severe disability, i.e., 80% or more disabled

80DDB

Medical treatment for specified diseases 

Rs 40,000 for self and dependents

Rs 1,00,000 for senior citizens

80TTA

Interest on savings bank accounts by senior citizens Rs 10,000

80TTB 

Interest on deposits by resident senior citizens of Rs 50,000

80U 

Resident taxpayer with disability 

Rs 75,000

Rs 1,25,000 if the person has a severe disability, i.e., 80% or more disabled

Conclusion

For qualified female taxpayers, paying income tax is required by the nation's legal framework. In addition to financial forfeiture, failing to pay income taxes can land you in jail. Thus, women must pay income tax according to their tax bracket each year if they have a taxable income.

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