Financial Benefits and Government Schemes Every Woman in India Should Know
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Financial Benefits and Government Schemes Every Woman in India Should Know

Financial Benefits and Government Schemes Every Woman in India Should Know
  • 25th Mar 2021 |
  • 13,995

Indian women have come a long way from the time they were financially dependent on men. Today, women are independent. They take charge of their finances and make their own financial decisions. In addition, several government initiatives are especially focussed on improving the financial independence of women. And, even though many working and self-employed women are aware of such benefits and other financial opportunities, there are several other women completely unaware of these benefits. Time and again, the Indian government has taken significant steps to increase awareness amongst women regarding advantageous financial schemes. However, not all efforts have been fruitful, and a majority of women still are not cognizant of their financial benefits.

Here is a comprehensive list of financial benefits and government schemes every woman in India should know:

1.Additional features for women savings bank accounts: : 1 Apart from offering the regular savings bank account feature, banks allow women to secure their funds in a specially-designed savings accounts. These savings accounts categorically fulfil the financial and investment needs of the Indian women today and host competitive features as per the modern lifestyle expectations. Banks further offer significant discounts, cashback rewards, free gifts, etc., for women who use their savings bank account credit or debit card to shop. The offer is also applicable for spending on food, wellness, entertainment, etc. Apart from these advantages, the women special savings bank accounts offer discounted health packages or discounts on services such as medical tests, and more. Further, to support women financially, the government also permits women bank account holders to open a ‘Junior Account’ for their child. Working women can save money in these accounts to cover the education expenses of their child. There is no monthly minimum balance requirement if the account is associated with a Recurring Deposit (RD) or a Systematic Investment Plan (SIP).

2. Low premiums in life insurance plans for women: : To encourage women to buy insurance plans, the insurer offers special life and health insurance plans. Moreover, most insurance providers charge a lower premium on life and health insurance cover for women as compared to their male counterparts. This is also because as per reports, women have a higher life expectancy rate than men. This reduces the risk of claim on the part of a women policyholder. Thus, insurers allow them higher sum assured at much lower premiums than men, in general. On average, women are given a three-year setback on premium charges as compared to men. For example, the life insurance premium for a 40-year-old female and a 37-year-old male would likely be the same. Term plans provide best-in-class insurance benefits at economical premiums with special premium rates for women, enabling them to become more financially independent. That said, specifically in the case of health insurance, women do not get any advantage on premiums since the premiums are based on the policyholder’s health, family history, age and other individualistic factors. So, in the same case of a 40-year-old woman and 37-year-old male, the premiums for the latter health insurance policy will be lower owing to age.

3. Lesser interest on loans taken by women: Many leading banks provide home loans to women at lower rate interest. In some cases of joint home loans, the banks also offer discounted loan rates if the woman is a first applicant for the specific loan. Averagely, the difference in the rate of interest is nearly 0.05%. In addition, women also get discounted car loans from banks as compared to their male counterparts. The net interest savings across the period of the loan allow women to save higher, provided the rate of interest remains the same throughout the loan tenure. This is even more beneficial when families take a large loan via a woman applicant. Apart from low-interest rates, some banks also waive off any loan processing charges for women.

Save Tax Now

4. Low stamp and transfer duty in real estate dealings for women: If the property in the name of a woman, some states in India offer financial benefits to women in the form of a lower stamp and transfer duty in case of sale deeds, conveyance deed and gift deed. A few states also completely exempt the stamp and transfer duty on real estate transactions for women. For instance, in Delhi, the stamp duty charges for a sale deed where a woman is a buyer of the property is 4%. Whereas, the stamp duty for a man is 6%. Similarly, the fee for women is lower than men when it comes to conveyance and gift deeds. Further, some municipal corporations also let go of the property tax, if the property is in the name of a woman

5. Beneficial monetary schemes for women entrepreneurs: The government has also launched several schemes for women entrepreneurs. For example, the Bhartiya Mahila Bank (BMB) business loan scheme is for women who wish to start their own business. The scheme provides loans up to Rs. 20 crores for women-owned manufacturing companies at an interest rate of 10.15%. The scheme also provides collateral-free loans up to Rs. 1 crore for micro and small enterprises. Another government-backed monetary initiative for women is the Annapurna Scheme. The program aims to financially support women in establishing a food catering business. The program grants loans up to Rs. 50,000 to allow women to buy utensils, kitchen tools, and other equipment for the business. The interest rate varies per the market standard and concerned bank. The loan amount is to be paid back in three years. Apart from these two popular schemes, there are other monetary schemes launched by the government to promote women entrepreneurs in the country. Some of the most popular ones include Cent Kalyani Scheme, Mahila Udyam Nidhi Scheme, Udyogini Scheme, Orient Mahila Vikas Yojana Scheme, Dena Shakti Scheme, Mudra Yojana Scheme for Women, Stree Shakti Package, etc.

6. TREAD (Trade-Related Entrepreneurship Assistance and Development) scheme: TREAD aims to economically empower women by offering them credit, training, development and counselling support in the space of products, services, trades, etc.

7. Working women hostel for economical accommodation for working women: The government has also helped women by launching Working Women Hostels to provide a safe and convenient living space for working women and their families. Women get accommodation, along with daycare facilities for their children. These hostels are set up across urban, semi-urban and rural areas. However, these hostels are only available for women whose monthly income does not exceed Rs 50,000 per month in urban areas, and Rs 35,000 per month in other areas.

8. Mahila Shakti Kendra for overall women development:: This program by the government was launched in 2017 to financially empower women by providing skill development support, digital literacy, employment and more. Each Shakti Kendra (at national, state, district and block levels) offers an interface for rural women to avail benefits via training and capacity building.

9. Sukanya Samridhi Yojana to safeguard girl child’s future:Sukanya Samriddhi Yojana (SSY) is a government-sponsored scheme launched to benefit the girl child and assure a brighter future for her. Parents or legal guardians of a girl child under ten years of age can invest in SSY. The scheme has a fixed tenure of 21 years and offers an average rate of return between 8% and 9%. Deposits can be made once every month or on an annual basis for 15 years from the date of the SSY account opening. The minimum permissible tax-saving investment is Rs 1000, while the maximum is Rs. 1.5 lakhs. The account will be managed after 18 years of age. According to the Income Tax Act, investments in SSY up to Rs. 1.5 lakhs are eligible for tax saving under Section 80C. Further, the interest income and maturity proceeds of SSY are also tax-free. But the amount from the SSY account can be withdrawn only after the girl is 18 years old, subject to some specific terms. That said, in some cases, partial withdrawal is allowed for the purpose of higher education of the girl child. This scheme is available with all PSU banks, India Post Office, and some reliable private sector banks.

10. Mahila-E-Haat for women entrepreneurs: This programme is governed by the Ministry of Women and Child Development. Started in 2016, Mahila-E-Haat is a bilingual marketing platform that uses technology to enable budding women entrepreneurs, self-help groups, NGOs and others to promote their products and services.

Conclusion

Women in India are progressing in all spheres. Now, it is about time women gained complete financial independence by taking advantage of many of the above-mentioned government schemes and financial benefits. These schemes and initiatives encourage and aid women to start their own business, safeguard their lives, protect their families and their health, and ultimately achieve their financial goals. Besides, most of these schemes also help women save more on taxes, owing to their tax exemption advantages. Even though India needs to take more critical measures to empower the women of the country, such initiatives are proof that there is hope for a better tomorrow for women.

Download Brochure

Features

  • Increasing Life Cover*
  • Guaranteed^ Maturity Benefits
  • Enhanced Protection Through Riders
  • Tax Benefits
  • Dual Benefits: Guaranteed^Maturity + Death benefits

Ref. No. KLI/22-23/E-BB/999

T&C

Browse our library of resources

Download Brochure

Features

  • Enhanced Protection Through Riders
  • Life Cover
  • Tax Savings
  • Multiple Premium Payment Terms
  • Guaranteed @ Loyalty Addion
  • Accrued Guaranteed @ Additions

Ref. No. KLI/22-23/E-BB/490

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

A Comprehensive Guide to Understand the ITR 7 Form

Tax Saving Guide for 2019-20

Impact of GST on Life Insurance in India

How to File Form 10E for Tax Relief on Salary Arrears?

What is the Maximum Maturity Benefit in Assured Savings Plans?

What is the Percentage of Tax Deducted at Source (TDS)?

8 Things to Help You Select a Savings Investment plan

What is ITR 5 Form and How to File ITR 5?

Section 80D - Medical and Health Insurance Tax Benefits Under Section 80D

How to file Form 16 online?

Tax-Savings Investments and Options in India

What is ITR & How to File Income Tax Return?

5 Unusual Investments You Didn't Know for Saving Taxes in India

Investing Lump Sum Amount

Section 80E: Tax Exemption on Interest on Education Loan

E-Filing of Income Tax Returns in India

Guaranteed Return Plans-Why is it a must for you?

What are the Different Types of Taxes in India?

How Much Money This Budget 2019 Can Help You Save

What is TDS Exemption Limit?

A Complete Guide for Filing ITR 3 Form

What is Tax Evasion and What Are The Penalties For Tax Evasion In India?

Tips to plan your savings in 2019

Income Tax Exemption for Physically Handicapped Dependent

How to File Form 16 for Salaried Employees?

Pradhan Mantri Suraksha Bima Yojana

Interest Imposed Under Sections 234A, 234B and 234C

Income Tax Exemption for Disabled

Problems People Face with Tax Returns after a Job Change

Section 10 (10d) of Income Tax Act, 1961 on Payouts of Life Insurance Policy

A Guide to Life Insurance Policy’s Tax Benefits and Taxability

How to Save Tax on Salary Arrears?

How to Download Form 16?

Tax Exemption and Scope of Coverage

How to Get Form 16?

52 Weeks Savings Plan: Daily Savings Plans for a Better Tomorrow

Save Income Tax by 31st March: Here Is a Checklist

Tax Deductions You MUST Know

Tax Saving Options other than Section 80C

What is Section 80CCC of the Income Tax Act 1961

भारत में महिलाओं के लिए सरकारी योजना

Section 16 of the Income Tax Act (ITA), 1961

LTC Cash Voucher Scheme October 2020 – Everything You Need to Know

Have You Considered Term Insurance a Part of Your Tax Planning?

What is TDS Refund Process?

Tax-Free Income in India

How to File Income Tax Return for First Time Tax Payers

Tax Benefit of Investing in Term Plan

What is Section 10D of the Income Tax Act?

What is Tax Deduction at Source (TDS)?

Why January Is an Important Month for Saving Tax?

ITR-6: Guide to filing ITR-6 Form online

What is the Difference between Form 16 and Form 16A?

Insurance and Endowment: Everything You Need to Know!

Should one prefer a guaranteed savings plan over monthly income schemes?

When Should TDS be Deducted and Who is Liable to Deduct it?

Income Tax Deductions for Disabled Person Under Section 80U

ITR 1: Sahaj Form

What is Section 80C - Explained in Detail

Challan 280 - How to Use Challan 280 to Pay Income Tax

What is Section 80C Deduction?

Section 44AD of Income Tax Act for AY 2021-22

Union Budget Highlights – 1st February 2022

What are Direct Taxes? How to Avoid being Overtaxed?

How to e file ITR on Income Tax Government Portal

All about TDS on Salary under Section 192 – Kotak Life

What is TDS Slab?

Income Tax Slabs and Rates in India for FY 2021-22/AY 2022-23

How to View 26AS and Download Form 26AS Online?

Tax Season Is Coming- Know How to Save Tax

Things to Do After Filing Income Tax Returns

Home Investment Plan to Buy Dream Home

ITR 2 Form – Complete Guide

Understanding Tax Exemptions in ULIP (Old and New)

How to File ITR Online

Top 8 Tax-Saving Methods in India- Budget Planning

Excess TDS Deduction – Claim TDS Refund

Income Tax Deductions Under Section 80C

Investment Proofs You Need Submit To Lower TDS Cut From Your Salary

All about TDS Payment Online & Due Dates

Can You Get Term Insurance Without Income Proof?

What is Salary Protection Insurance and Why You Need It

How to Check Income Tax Refund Status Online in India

What is the TDS Rate on Salary?

What is HRA (House Rent Allowance) and How is HRA Exemption Calculated?

Why Tax Planning Should Be an All-year Round Activity

Penalty For Late Filing TDS Return

Tax Saving for Self Employed in India

Income Tax Deduction Under Section 80CCC In India

Section 80G of the Income Tax Act

धारा 80सी आयकर अधिनियम, 1961

What is Form 16B?

How To Save Tax Using Life Insurance?

What Investment Options Come with Tax Incentives?

Financial Planning and Best investment options for Housewives

TDS Due Dates of FY 2020-21 For Return Filing

How to File TDS Return?

5 Popular Tax-Saving Schemes in India

Types of Income Tax Return (ITR) Forms

Tax Saving Tips: Best Ways to Save Income Tax for 2021

What is the Difference Direct Tax and Indirect Tax

Guide for Tax Calculation on your Salary

इनकम टैक्स रिटर्न कैसे फाइल करें?

आयकर रिटर्न (आईटीआर) फॉर्म के प्रकार

How to View 26AS and Download Form 26AS Online

Difference between Section 80C, 80CCC, 80CCD & 80D

How To Save Tax Better with 80C

List of Important Income Tax FAQs

Income-Tax Liability- The Difference Between Gross Income & Total Income in Calculating Income Tax

Saving Income tax in 2017 - 18

Income Tax Filing For NRI in India

What is Form 26AS - All You Need To Know

Why is Form 16 Important?

What is the Last ITR Filing Date and Penalty for Late Filing of ITR?

How to Calculate returns on an assured savings plan?

आयकर स्लैब 2021-2022

How to e-Verify your Income Tax Return

Received an Income Tax Notice? Your Guide to Understanding Intimations under Section 143 (1)

Tax Saving Options for Salaried Employees

Tax Planning and Tax Benefits of Life Insurance

How to save tax for salaried person?

What are Deferred Savings Plans?

How can I get Form 16B from traces?

Tax Benefits for Startups in India

Presumptive Taxation for Business and Profession

Are Financial Planning and Tax Planning the Same Thing?

How to Pay Advance Tax Online in India

How to File Income Tax Return - Everything You Need to Know

What is a savings plan?

How to Check Income Tax Refund Status Online in India

All You Need to Know About Section 80C

How to Save Income Tax with Insurance

सुकन्या समृद्धि योजना (SSY) के कर लाभ क्या हैं?

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB for FY 2021-22 & 2022-23

How to File Income Tax Return without Form 16

What Is Advance Tax and How Is It Calculated?

Income Tax Benefits for Doctors

Section 80C Deductions as per Income Tax Act, 1961

प्रत्यक्ष कर और अप्रत्यक्ष कर में क्या अंतर है?

What is Form 16A?

Difference Between Guaranteed and Assured Returns

What To Do If Your TDS Is Not Deposited With The Government?

Tax Benefits of ULIP Plans Available for NRIs

Who Should Invest In Savings Plan

Budget 2019: Impact on the Common Man in India

What is Section 80C Deduction Limit?

Types of Riders in Insurance Policy

9 Income Tax Myths That Could Cost You Money while Filing returns

Tax Structure in India

Everything You Need to Know About Tax Benefits of National Pension Scheme (NPS)

Income Tax Filing Using Multiple Form 16

Do Beneficiaries Pay Taxes on Life Insurance?

धारा 80डी आयकर अधिनियम, 1961

Sub-sections Under Section 80C of the Income Tax Act, 1961

How to Check Income Tax Returns Status Onine?

What is Section 195 of the Income Tax Act? TDS on Non-Residents of India