India has a progressive tax regime. This implies the more you earn, the more tax you need to pay annually. However, people earning up to ₹7,50,000 annually are exempted from the tax slabs. Any income after this limit is taxable.
Key Takeaways
- India has a progressive tax regime.
- The income tax slab starts from 5% and goes up to 30%.
- People earning up to ₹7,50,000 annually are exempted from the tax slabs.
- The government provides several tax benefits and reliefs to women.
- Women with annual taxable income of more than ₹50 lakh require to pay an additional surcharge on top of their income tax slab.
As an Indian citizen, you need to pay tax according to the defined slabs. The income tax slab starts from 5% and goes up to 30%. However, there are some benefits and reliefs to women under the income tax regime to empower them in the economy.
Taxation and Women
Earlier, the Indian government offered a higher basic tax exemption for women to promote women in the workforce. However, this system was abolished after FY 2012-13. But the government continued to provide benefits and reliefs to women in the form of lowered interest rates on home loans, rebates on property tax, concession on stamp duty, etc.
Categories Under Income Tax
- Individuals: Residents below 60 years of age, including Non-Residents.
- Senior Citizens: People above the age of 60 years.
- Super Senior Citizen: People above the age of 80 years.
Income Tax Slab for Women 2023-24
Under the Union Budget of FY 2023-24, the government proposed a new tax regime. The following table will show tax slabs for women below 60 years:
Tax Slabs
|
Taxation Rate
|
Up to ₹3,00,000
|
NIL
|
₹3,00,000-₹6,00,000
|
5% of the total income that exceeds ₹3,00,000
|
Between ₹6,00,001 - ₹9,00,000
|
₹15,000 + 10% of your total income that exceeds ₹6,00,000
|
Between ₹9,00,001 - ₹12,00,000
|
₹45,000 + 15% of your total income that exceeds ₹9,00,000
|
Between ₹12,00,001 - ₹15,00,000
|
₹90,000 + 20% of the total income that exceeds ₹12,00,000.
|
Above ₹15,00,000
|
₹1,50,000 + 30% of your total income that exceeds ₹15,00,000
|
Additional Surcharge for Women
Women with annual taxable income of more than ₹50 lakh require to pay an additional surcharge on top of their income tax slab. You will get clarification with the following table:
Annual Taxable Income
|
Additional Surcharge Rate
|
Above ₹50 lakh to ₹1 crore
|
10%
|
Above ₹1 crore to ₹2 crore
|
15%
|
Above ₹2 crore to ₹5 crore
|
25%
|
Above ₹5 crore
|
37%
|
Taxable Income
Most of you must be wondering what income is considered taxable and what is not. To build a better understanding of taxable income, you must refer to the following points:
Income from Salary
Anything earned from a job in the form of salary is considered taxable. However, you will get the exemption from tax up to a certain limit, but it is a good practice to file an income tax return annually.
Income from Business or Private Practice
If you are an entrepreneur or a professional who offers private consultancy services, then your income is considered taxable. Income earned from freelancing or part-time jobs is also a part of taxable income under the Indian Tax Regime.
Income from Property
If you are earning rental income from tenants at some of your properties, then the income earned is taxable. This is also applicable if you and your tenants live in the same house, having separate portions.
Income from Other Sources
Interest earned through FDs or other deposits is included under your taxable income. However, if you have gifts from your marriage, then it is not considered taxable.
To Sum Up
Women in the workforce not only uplift themselves but also bring change in the community altogether. Hence, the government initiates subsidies and tax rebates to strengthen women financially. These steps have shown a positive result in past years and, therefore, continued till date.
