Income Tax Slab for Women in India

India has a progressive tax regime. This implies that the more you earn, the more tax you pay annually. However, people earning up to ₹7,50,000 annually are exempted from the tax slabs. Any income after this limit is taxable.

As an Indian citizen, you must pay tax according to the defined slabs. The income tax slab starts from 5% and goes up to 30%. However, some benefits and reliefs for women under the income tax regime empower them economically. Let us understand the income tax slab for females in India.

Are Income Tax Slabs Different for Males and Females?

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. However, the government continued to provide benefits and relief to women through 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 Slabs for Women Below 60 Years (FY 2023-24)

In India, the income tax slabs for FY 2023-24 (AY 2024-25) are the same for men and women below 60 years of age, regardless of the tax regime chosen. Here are the tax rates for different income tax slabs for women below 60:

However, a tax rebate provision can benefit women taxpayers, especially those under the new tax regime.

Income Tax Slabs for Women Between 60-80 Income (FY 2023-24)

Taxable income for women for FY 2023-24 (AY 2024-25) differs for senior citizens between 60 and 80 years old compared to younger individuals. Let us take a look at these:

Income Tax Slab for Super Senior Citizens (Women Above 80 Years) (FY 2023-24)

The income tax slabs are the same for super senior citizens (women above 80 years) as other age groups. However, they benefit from a much higher tax exemption limit. Here are the income tax rates for super seniors in India:

Additional Surcharge Rate For Women Taxpayers - New and Old Tax Regime

In India, there is no additional surcharge rate for women taxpayers under either the new or old tax regime. Surcharge rates are based on income level, not gender.

Here is the list of surcharge rates applicable to both men and women:

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

Your income is taxable if you are an entrepreneur or a professional who offers private consultancy services. Income earned from freelancing or part-time jobs is also a part of taxable income under the Indian Tax Regime.

Income from Property

The income is taxable if you earn rental income from tenants at some of your properties. This also applies if you and your tenants live in the same house but have separate portions.

Income Tax Rebate for Women

Women taxpayers, like their male counterparts, are eligible for a rebate under Section 87A. If their total annual income does not exceed ₹5,00,000, they can claim a rebate of up to 100% of the income tax payable or ₹12,500, whichever is lower.

Under the new tax regime, this rebate increases to up to 100% of the income tax payable or ₹25,000, whichever is lower, for those with a total annual income not exceeding ₹7,00,000.

Income Tax Exemptions for Women Allowed Under New Tax Regime

Under the new tax regime introduced in India, the focus is on lower tax rates with fewer exemptions and deductions. However, there are still certain income tax exemptions that women can utilize:

• Standard Deduction: A standard deduction is available to all salaried employees, including women. As of the current financial year, this is ₹50,000.
• Employer Provident Fund (EPF): Contributions made by an employer to the EPF are exempt up to a certain limit.
• National Pension Scheme (NPS): Additional deductions for contributions towards the NPS under Section 80CCD(1B), up to ₹50,000.
• Health Insurance Premiums: Deductions under Section 80D for health insurance premiums remain applicable, benefiting women taxpayers as well.

Exemption For Women Taxpayers In India

Exemptions specifically tailored for women taxpayers in India are designed to provide financial relief and promote economic equality. Key exemptions include:

• Section 80C Deductions: Women can claim deductions up to ₹1.5 lakh for investments in instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), life insurance premiums, etc.
• Interest on Savings Accounts: Interest earned up to ₹10,000 from savings accounts is exempt under Section 80TTA.
• Education Loan Interest: Deductions on the interest paid on education loans under Section 80E.
• House Rent Allowance (HRA): Women can claim HRA exemptions if they live in rented accommodation, subject to certain conditions.
• Sukanya Samriddhi Yojana: Investments in this scheme for a girl child offer tax benefits under Section 80C, and the interest earned is also tax-free.

Key Takeaways

• Income tax rates in India range from 5% to 30%, depending on income levels.
• There is no difference in tax slabs for men and women below 60 years as of FY 2023-24.
• Women still receive various benefits, such as lower home loan interest rates, property tax rebates, and stamp duty concessions.
• Benefits of paying tax for women include higher exemption limits in some years and special savings schemes for women (e.g., Sukanya Samriddhi Yojana).

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.

FAQs on Income Tax Slab for Women