Synopsis: On International Women's Day, we explore the various tax benefits and financial incentives available to women in India, aimed at promoting financial independence and security. These provisions encompass areas such as entrepreneurship, healthcare, education, homeownership, and retirement planning.
In recent years, India has made significant strides in promoting financial inclusion among women.
Women are increasingly taking charge of their financial futures, making informed decisions about investments, tax savings, property ownership, and entrepreneurship.
To support this empowerment, the Indian government has introduced various tax benefits and incentives tailored to women's unique financial needs.
Income Tax Slabs and Rebates:
As of the financial year 2025-26, the income tax structure in India does not differentiate based on gender.
However, under the new tax regime, taxpayers, including women, can claim a rebate of up to Rs. 25,000 if their total income does not exceed Rs. 7,00,000 in a year under Section 87A.
Women as Business Leaders:
Women entrepreneurs can benefit from the presumptive taxation scheme under Section 44AD, which simplifies tax filing by allowing them to declare their taxable income as a percentage of their turnover.
The scheme provides a 6% rate for digital transactions and an 8% rate for cash transactions, with the turnover limit extended to Rs. 3 crore for businesses with predominantly digital transactions.
Healthcare and Insurance:
Health insurance is crucial for financial security. Under Section 80D, women can claim tax deductions on health insurance premiums up to Rs. 25,000 for themselves and their families.
If they insure senior citizen parents, the deduction increases to Rs. 50,000.
Savings for the Girl Child:
The Sukanya Samriddhi Yojana (SSY) is a pivotal scheme focusing on securing the future of girl children.
Contributions qualify for deductions under Section 80C up to Rs. 1.5 lakh, and both interest and withdrawals are tax-free, offering a triple exemption benefit.
Home and Education Loans:
Women borrowers can avail themselves of tax deductions similar to all taxpayers.
Section 80C allows a deduction of up to Rs. 1.5 lakh on the principal repayment of home loans, while Section 24(B) permits a deduction of up to Rs. 2 lakh on interest payments.
Education loans qualify for deductions under Section 80E, with no upper limit on interest payments.
Incentives for Retirement:
Retirement planning is supported through the National Pension System (NPS) and Employee Provident Fund (EPF).
NPS offers an additional deduction of Rs. 50,000 under Section 80CCD (1B), supplementing the Rs. 1.5 lakh deduction under Section 80C.
EPF contributions also qualify under Section 80C.
Conclusion:
India's tax policies and financial schemes are structured to empower women by providing avenues for savings, investment, and financial security.
By leveraging these benefits, women can enhance their financial independence, contribute to economic growth, and secure a stable future for themselves and their families.
Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as professional financial or tax advice. Individuals are advised to consult with a qualified financial advisor or tax professional to understand how these benefits apply to their specific circumstances.
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