" income tax slab for female.

In every corner of the world we have seen that when women are economically empowered and take on leadership roles, communities are forever changed. When women are living safe, fulfilled and productive lives, they can reach their full potential. Contributing their skills to workforce and can raise happier and healthier children. They are also able to fuel sustainable economies and benefits societies and humanity at large. Today, many women enjoy financial independence and make the best of life decision. Women also pay taxes to the government of India being responsible citizens of India. Central government also offers various benefits to women, including tax rebate and exemption. In this article you will get know about Tax Slab for Women in India and exemption rebates that they can avail.

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What is income tax slab?

The government of India imposes Income tax on all income generated by individual and businesses as per the income generated by them. These ranges of incomes are known as Income Tax Slabs. An individual resident’s basic exemption limit is decided based on his or her income. For the purpose of taxation, individual taxpayers, including women fall under below three categories.

• Individual below 60 years of age.
• Individual between 60 and 80 years of age(senior citizen)
• Super senior citizens, those above age of 80 years.

Income tax slab for women

Earlier to the F.Y 2011-12 (income tax slab for A.Y. 2012-13 or A.Y 2012-13 slab rates), women and men had different tax slabs with women having to pay less tax as compared to men earning the same amount. The tax exemption limit for women was higher. However in financial year 2012-13 (income tax slab for F.Y. 2012-13), common tax slabs became applicable for both men and women.   

Income tax rates in India and tax slabs in India under new and old tax regime for F.Y. 2020-21:-

 (Income tax slab for A.Y. 2021-22 & new income tax slab) 

If income is above Rs. 50 lakh surcharge will be applicable. Health and Education cess at the rate 4% will be added to income tax payable in all cases also rebate of Rs. 12500 is available having net taxable income of up to Rs. 5 lakh under section 87A of the income tax act.(87a rebate for F.Y 2019-20).   

Note: - In this new tax regime, taxpayers has an OPTION to choose either of the following:-

1.  To pay income tax at lower rate as per the new tax regime (new tax slab) on the condition that they have to forgo certain permissible exemptions and deductions available under income tax.

OR

• To continue to pay taxes under the existing tax rates. The assessee can avail exemptions by staying in the old tax regime and paying taxes at the existing higher rate.

Now we look at the latest income tax slabs and rates under old tax regime (Income tax slab for F.Y 2020-21)

Indian Income tax rates and slabs for resident individuals below 60 years of age for F.Y. 2020-21(tax rate for A.Y. 2021-22):-  

Incometax slab and India income tax rate for resident individuals (Senior Citizen age for women) between 60 and 80 years for F.Y. 2020-21:-  

Income tax rates and tax slabs for resident individuals above 80 years of age (Super Senior Citizen) for F.Y. 2020-21:-  

(Income tax slab for F.Y. 2020-21)

The income tax for women can be filed (itr form for housewife) in ITR 1, ITR 2, ITR 3, and ITR 4 forms and this differs from case to case and income to income. If you have salaried income then you will file ITR 1 and if you have the business income you will file ITR 4.

Additional Surcharge

If a woman having an income exceeding 50 lakh, she has to pay the surcharge on the income tax according to budget 2019 tax relief. Income tax surcharge is an additional charge on the income tax that taxpayers are liable to pay to the government of India.

Income tax Exemption for women (income tax benefits in India)

Tax rebate for women

Here are some exemption limits and income tax rebate applicable for income tax payment. Section 80 of the income tax act has provisions that allow individuals to save taxes and claim deductions various section.

Section 80 C: - Under this section a deduction of Rs. 1,50,000 can be claimed from your total income. This deduction will allow to individual and HUF. Earnings may be from the following:

• National Saving Certificate
• National Pension Scheme.
• Employee Provident fund.
• Senior Citizen Saving Schemes.
• Sukanya Samriddhi Yojna
• Equity Linked Savings Scheme.

Section 80 TTA: - Section 80TTA provides a deduction of Rs. 10000 an interest income. This deduction is available to an Individual and HUF .

Section 80CCC:- Section 80CCC allows deduction for payment towards annuity pension plans Pension received from the annuity or amount received upon surrender of the annuity, is taxable in the year of receipt.

Section 80D: - Section 80D of the Income tax Act provides income tax deduction related to the medical insurance premium paid for you and your family members. You can claim deduction for the health insurance premium paid for self, parents, children, and spouse.

 For a person aged below 60 years, the limit for deduction under section 80D is up to Rs. 25000. The limit of Rs. 25000 includes Rs. 5000 on prevention health checkup. And if the age of the insured is above 60 years, the limit for deduction increases up to Rs. 50000.

Section 80E:- This section allows an exemption on the total interest paid for any education loan. There is no limit to this exemption.

Section 80DDB: -Section 80DDB provides that if an individual or an HUF has incurred medical expenses for the treatment of specified diseases or ailments, such expenses is allowed as deduction, subject to the condition, under section 80DDB of Income Tax Act.

Section 80GG: - Section 80GG will be applicable on rent payment. The limit to this exemption is set at the lower amount between the following:

• Total rent paid – 10% of your total income.
• 25% of your total income.
• Rs. 5000 per month.

Section 80G: - Any donation made to a relief fund or charitable institution qualifies for a deduction. Deduction under section 80G is limited to a maximum of 10% of Gross Total Income.

Section 80DD: - This section allows exemption on medical treatment for a handicapped or dependent family member. Following are the exemption limits under section 80DD:

• If the handicapped individual has a bodily or mental disability of 40-80%, then you will be able to avail an exemption of up to Rs. 75000.
• If the bodily or mental disability is above 80%, then the tax exemption limit is set at Rs. 1,25,000.

Section 80TTB: - Section 80TTB of the Income Tax Act provides a deduction to a senior citizen in respect of interest income earned on deposits with a bank or a co-operative society or a post office. The maximum amount of deduction available is Rs. 50000.

Through these income tax rebate women taxpayer can check her exempted income.

                  So by making the right investment choices and by availing tax exemptions, women can minimize their tax liability. Even though these investments are long-term in nature, they can be extremely beneficial when it comes to saving taxes. Before filing, income tax for F.Y. 2020-21 make sure to check women tax slab and exemptions applicable to you. We know that women are very strong and can handle everything alone but still as filing the income tax procedure may be a little bit difficult for you and you might need experts in this field. And the experts of TAX ADVISORY will be glad to your assistance. Tax Advisory is India’s leading legal service provider. You just need to visit www.taxadvisory.in or contact us directly on 9193555055.

By Surya Arora

Content Marketer

Tax Advisory

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