Income Tax Slab for Women

Taxable Income for Women

Understanding what income is taxable and what is not is crucial for managing your finances effectively. Here's a breakdown of taxable income to help you navigate the intricacies:

Income From Salary:
Any earnings from employment, typically in the form of salary, are subject to taxation. While there are exemptions up to a certain limit, it's advisable to file an annual income tax return.

Income From Business Or Private Practice:
Entrepreneurs and professionals offering consultancy services generate taxable income. Even earnings from freelancing or part-time work fall under the purview of taxable income in India.

Income From Property:
Rental income derived from properties is taxable, whether from tenants or if you reside on the same premises with separate living spaces.

Income From Other Sources:
Interest earned through fixed deposits or other investments is considered taxable income. However, gifts received during marriage are exempt from taxation.

Understanding these categories helps in managing finances efficiently and ensures compliance with taxation regulations. By being aware of taxable income sources, individuals can make informed decisions to optimize their financial planning and minimize tax liabilities.

Income Tax Exemptions for Women Taxpayers in India Under Old Tax Regime

Here are some allowances and deductions available to women under the old tax regime for the financial years 2022-23 and 2023-24:

    • Standard deduction of up to ₹50,000.
    • Leave Travel Allowance (LTA) and House Rent Allowance (HRA).
    • Reimbursement for expenses on telephone and mobile used at residence.
    • Reimbursement of expenses incurred on books, newspapers, periodicals, journals, etc.
    • Expenses incurred on food coupons.
    • Benefits on relocation allowance for shifting from one city to another for business purposes.
    • Benefits on various facilities provided by the employer such as health club facilities, cab facilities, gifts, or vouchers.

Here are the income tax exemptions and deductions available to women taxpayers in India under the old tax regime:

Income Tax Exemptions for Women Taxpayers in India Under New Tax Regime

Here are the income tax exemptions for women allowed under the new tax regime as per Budget 2023 and the existing exemptions for FY 2022-23 and FY 2023-24:

New Tax Regime Exemptions (Budget 2023):

• For Salaried Women:

◦ Standard deduction of up to ₹50,000 under the head 'Income from salaries' only on their salary income.

• Section 80CCD (2):

◦ Exemption on any NPS (National Pension Scheme) contribution by the employer to her NPS account. However, no tax benefits are allowed on the employee's own contribution. For private sector employees, it is up to 10% of their salary, while for government employees, it is up to 14% of their salary.

• Agniveer Corpus Fund (under 80CCH):
    
◦ Any contribution made to the Agniveer Corpus Fund, including contribution by the Agniveer or the Central Government to the Agniveer’s Seva Nidhi account.

• Section 80JJAA:      

◦ Additional employee cost, up to 30%.

Existing Exemptions (FY 2022-23 and FY 2023-24):

• Savings Schemes:        

◦ Interest on Post Office Savings Account is exempted up to ₹3,500 under Section 10(15)(i) for individual accounts, and ₹7,000 for joint accounts.
◦ Funds received from Life Insurance after maturity of the account are eligible for tax exemption, as per Section 10(10D).
◦ Interests and maturity amounts received from the Sukanya Samriddhi Account.

• NPS, PPF and EPF:    

◦ Tax exemption on employers' contributions to employee's NPS and EPF and superannuation accounts, up to ₹7.5 lakh in a financial year.
◦ Exemption on interest received from Employees' Provident Fund account, up to 9.5%.
◦ Tax exemption on the lump-sum maturity amount received from the NPS account and the partial fund withdrawal from the Tier I NPS account.
◦ Interest or the maturity amount received from the PPF account.

• Home Loans:     

◦ The interest component of a home loan borrowed for a rented property.

• Gratuity:       

◦ Employer gratuity to non-government employees is exempted up to ₹20 lakh, and for government employees, the entire gratuity is exempted from being taxed.

• Allowances by Employers:      

◦ Exemption on travel allowances for disabled employees, conveyance allowance, allowances provided to cover the travel cost or transfer of an employee, perquisites, and daily allowances.
◦ Allowances to employees provided by employers for performing official duties.
◦ If non-government employees receive a commuted pension, then 1/3rd of it qualifies for tax exemption if the employee receives gratuity. If employees do not receive gratuity, then ½ of commuted pensions is tax exempted.
◦ Gifts received from employers, up to ₹5,000.

• Retirement:    

◦ Exemption on leave encashment.
◦ Monetary benefits received from employers for voluntary retirement, up to ₹5 lakh.
◦ Education scholarships, retrenchment compensation, and monetary benefits for retirement cum death.

The income tax system for women in India aims to ease financial burdens and promote economic independence. Government measures, including reduced tax rates for certain income levels, deductions for specific expenses, and empowerment schemes, underscore its commitment to gender equality and financial inclusivity.

By supporting women in the workforce through subsidies and tax rebates, the government fosters both individual prosperity and community development. These initiatives have yielded positive outcomes, prompting their ongoing implementation to empower women and drive economic progress.