Income Tax Slabs for Women: Know About Exemptions and Deductions

For women, an income tax slab is the range of income within which a fixed tax rate is imposed. In India, there is no specific classification for women; they are placed under the same tax bracket as men. In India, there are three age-based categories for taxpayers: Regular Taxpayers (those under 60), Senior Citizens (those between 60 and 80), and Super Senior Citizens (those over 80). Women used to receive greater basic tax exemptions from the government; however, this ended after FY 2012–2013. However, women continue to receive advantages such as lower interest rates on loans and refunds of property taxes. In this article, we will explain the tax slabs and exemptions for women in India in detail.

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Table of Contents

What is a Special Allowance?

Exemptions for Special Allowance: Old & New Tax Regime

Tax Treatment for Special Allowance

Conclusion

Most Asked Questions

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Income Tax Slabs for Women: A Detailed Overview

An income tax slab describes the tax rate that applies to an individual based on their income and age. Every Union Budget may alter the tax rate even when the other conditions stay the same. The tax rate stays the same as it was the year before if there are no adjustments indicated in the budget. The tax rates and slabs in India under the previous tax system were determined by the taxpayer's income and age. For the purposes of income tax, a person can be divided into: 

• Individuals: Non-residents and Residents under 60 years of age

• Senior citizens: People who are sixty years of age or older 

• Super senior citizens are those who are 80 years of age or older

Tax Slabs for Women Under 60 in 2023-24 (Old Tax Regime)

Tax Slabs for Women Under 60 in 2023-24 (New Tax Regime)

Tax Slabs for Senior Women in 2023-24 (Old Tax Regime)

Tax Slabs for Senior Women in 2023-24 (New Tax Regime)

Tax Slabs for Super Senior Women in 2023-24 (Old Tax Regime)

Tax Slabs for Super Senior Women in 2023-24 (New Tax Regime)

In addition, there is a 4% income tax cess on health and education. Under the new regime, women who earn up to Rs. 7 lakhs might qualify for a tax rebate of up to Rs. 25,000. Under the previous system, there was a tax refund of up to Rs. 12,500 for incomes up to Rs. 5 lakhs. Women taxpayers whose yearly income surpasses Rs 50 lakh will be charged an extra premium as of April 1, 2023. The surcharge rates for the income tax slab for females in Assessment Year (AY) 2022–2023 are listed below:

Taxable Income for Women in India

It is essential to know what income is taxable and what is not if you want to manage your money well. For your convenience, we have broken down taxable income into its parts: 

• Income from Salary: Taxes are applied to any earnings from work, which are usually paid as salaries. Even though there are exemptions available up to a certain amount, filing an income tax return annually is advised. 

• Income from Business or Private Practice: Professionals who provide consulting services, as well as entrepreneurs, are subject to taxation. In India, earnings from part-time jobs or freelance labour are also considered taxable income.

• Income from Property: Whether you live on the same property with separate living quarters or receive your rental income from renters, it is subject to taxation.

• Income from Other Sources: Taxable income includes interest received from fixed deposits and other investments. Presents given during a marriage, however, are not subject to taxes. 

• Comprehending these classifications facilitates effective financial management and guarantees adherence to tax laws. People can minimise their tax payments and maximise their financial planning by making informed decisions based on their knowledge of taxable income sources.

Exemptions for Women as per the Old Tax Regime

Under the previous tax system, women were eligible for the following deductions and allowances for the fiscal years 2022–2023 and 2023–2024: 

• A standard deduction of ₹50,000 maximum

• House Rent Allowance (HRA)

• Leave Travel Allowance (LTA)

• Payment reimbursement for domestic phone and mobile usage costs

• Payment for costs spent on magazines, newspapers, books, journals, etc. 

• The cost of using food coupons

• Relocation benefits for moving for work while relocating to a different city

• Benefits on a range of amenities offered by the company, including gifts, vouchers, health club access, and taxi services

The following exemptions are available to women taxpayers in India under the Old Tax Regime:

Exemptions for Women Under New Tax Regime

Women are free from several taxes under the new tax law, including:

• Travel reimbursement 

• Travel allowance for disabled people 

• Leave encashment in accordance with Section 10(10AA)

• Conveyance allowance 

• Gifts up to ₹5,000

• Additional employee costs under Section 80JJA 

Category	Exemption
Salaried Women	Deduction of up to ₹50,000 on income under ‘income from salaries’
Section 80CCD (2)	Exemption on National Pension Scheme (NPS) contribution only by the employer to the employee’s NPS account.  private employees- 10% of the salary government employees- 14% of the salary
Section 80CCH- Agniveer Corpus Fund	Contribution to the Agniveer Corpus Fund by the Agniveer/ by Central Government to their Seva Nidhi account
Section 80JJAA	Exemption of up to 30% on additional employee cost

Conclusion

In conclusion, the Indian government provides women with a range of benefits and reliefs, but with the creation of a single tax slab for all genders in 2012–13, women have not been granted any unique deductions or advantages under the Income-tax Act, 1961. When making financial plans, women taxpayers must be aware of the applicable tax slabs, tax exemptions, and deductions.

FAQ

Q1. Can a housewife file an income tax return?

If a housewife receives income from any source, including interest, dividends, or tuition, and that income exceeds the basic exemption limit (Rs. 2,50,000 under the previous tax regime and Rs. 3,00,000 under the current tax regime), she is required to file an income tax return.

Q2. Are there different tax slabs for women in India?

There is no gender discrimination in Indian tax legislation for male and female taxpayers. For this reason, both can benefit from a single tax structure.

Q3. Is there any standard deduction for FY 2023-24?

Individuals who receive a salary or pension under the heading "Income from Salaries" will be eligible for a standard deduction of Rs. 50,000 beginning in the financial year 2023–2024. This is a set deduction that can be claimed independently of the individuals' investments or expenses. Significantly, this deduction is currently allowed under both the previous and current tax regimes.

Q4. What is the 80C limit for FY 2023-24?

Because it allows taxpayers to deduct up to Rs. 1.5 lakh from their taxable income,  Section 80C is well-known and frequently used. You can take advantage of this deduction by investing in tax-saving strategies, such as paying life insurance premiums, or by incurring qualified costs, like tuition for education. It is noteworthy that the deductions mentioned above are exclusive to individuals and Hindu Undivided Families (HUFs). It is noteworthy, though, that a taxpayer will not be able to claim this deduction under Section 80C if they opt for the new tax structure.

Q5. Is the tax filing date the same for all taxpayers?

Tax filing deadlines differ. Individuals are required to file their taxes on time. However, those who need a mandatory audit can file later.

Q6. Can women get exemptions on group health insurance policies?

No, people are not eligible for a tax refund on the group health insurance premium they pay. However, there are significant tax benefits associated with the premiums paid for individual health plans.