Women are successfully carving a niche for themselves in every field. They juggle work and home without complaining. Today, many women enjoy financial independence and make the best life decisions. They also pay taxes and fulfil their responsibilities as a taxpayer. The Indian Government offers various benefits to women, including tax rebates and exemptions. It proves beneficial as it helps in increasing one’s savings.
The income tax is levied on individual taxpayers based on different slabs.
This article talks about the different income tax slabs applicable for women in India along with the exemptions and health insurance tax benefits.
Income Tax Slab Rates Applicable for Women
Individual taxpayers, including women, fall under three categories as given below:
- Taxpayers (Resident and Non-resident) who are below 60 years of age.
- Senior citizens who are above 60 years of age and below 80 years.
- Super senior citizens, those above the age of 80 years.
Prior to the Financial Year 2011-12, the tax slabs with the basic tax exemption limit in India for men and women taxpayers were different. The tax exemption limit for women was higher. However, in Financial Year 2012-13, common tax slabs became applicable for both men and women.
In Budget 2022-23, the new tax regime was announced under which taxpayers had to forgo certain tax deductions and exemptions.
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The New Income Tax Slab for FY 2022-23
| Income Range |
Applicable Tax Rate |
| Up to Rs.2.5 Lakh |
Nil |
| Rs.2,50,001 to Rs.5,00,000 |
5% above Rs.2.5 lakh |
| Rs.5,00,001 to Rs.7,50,000 |
Rs 12,500 + 10% above Rs.5 lakh |
| Rs.7,50,001 to Rs.10,00,000 |
Rs 37,500 + 15% above Rs.7.5 lakh |
| Rs.10,00,001 to Rs.12,50,000 |
Rs 75,000 + 20% above Rs.10 lakh |
| Rs.12,50,001 to Rs.15,00,000 |
Rs 1,25,000 + 25% above Rs.12.5 lakh |
| Income exceeding Rs.15,00,001 |
Rs 1,87,000 + 30% above Rs.15 lakh |
Note: In addition to the tax rate given above, a cess of 4% is also applicable.
The basic tax exemption limit in India for individual taxpayers is Rs 2.5 lakh. As per Budget 2022, all taxpayers are eligible for a tax rebate up to Rs 12,500 for net taxable income up to Rs 5 lakh. Individual taxpayers, including women, can avail of the income tax rebate according to Section 87A of the Income Tax Act, 1961. This provision helps in reducing their tax liability.
As announced in Budget 2022-23, individuals have the option to choose either the old income tax regime or the new tax regime. Presently, there is no specific income tax exemption for women. Those having a total income of up to Rs 5 Lakh are eligible for a tax rebate of up to Rs. 12,500 on their taxes.
The Tax Slab Applicable for Women Taxpayers FY 2022-23
- Income Tax Slab for Women below 60 Years of Age
| Income Range |
Tax Rates |
| Up to Rs 2.5 Lakh |
Nil |
| Rs 2,50,001 to Rs 5,00,000 |
5% of total income which exceeds Rs 2,50,001 |
| Rs 5,00,001 to Rs 10,00,000 |
Rs 12,500 + 20% of total income which exceeds Rs 5,00,000 |
| Rs 10,00,001 and above |
Rs 1,12,500 + 30% of total income which exceeds Rs 10,00,000 |
- Income Tax Slab for Women Between 60 and 80 Years of Age
| Income Range |
Tax Rates |
| Up to Rs 3 Lakh |
Nil |
| Rs 3,00,001 to Rs 5,00,000 |
5% of total income which exceeds Rs 3,00,001 |
| Rs 5,00,001 to Rs 10,00,000 |
Rs 10,000 + 20% of total income which exceeds Rs 5,00,000 |
| Rs 10,00,001 and above |
Rs 1,10,000 + 30% of total income which exceeds Rs 10,00,000 |
- Income Tax Slab for Women Above 80 Years of Age
| Income Range |
Tax Rates |
| Up to Rs 5 Lakh |
Nil |
| Rs 5,00,001 to Rs 10,00,000 |
20% of total income which exceeds Rs 5,00,000 |
| Rs 10,00,001 and above |
Rs 1,00,000 + 30% of total income which exceeds Rs 10,00,000 |
Note: In addition to the above-given tax amount, a cess of 4% is also applicable.
The taxable income is calculated after considering the income tax exemption for women, tax deductions, and the taxes paid. Using an income tax calculator, one can estimate of tax, depending on the income.
Surcharge
A surcharge is an additional charge on the income tax that taxpayers are liable to pay. Individual taxpayers, including women taxpayers, are required to pay a surcharge on the income tax if they have an annual income exceeding Rs. 50 Lakh, according to Union Budget 2022.
Mentioned below is the slab:
| Income Range |
Tax Rates |
| Taxable Income above Rs 50 Lakh and up to Rs 1 Crore |
10% |
| Taxable Income above Rs 1 Crore and up to Rs 2 Crore |
15% |
| Taxable Income above Rs 2 Crore and up to Rs 5 Crore |
25% |
| Taxable Income above Rs 5 Crore |
37% |
Income Tax Exemption for Women
Section 80 of the Income Tax Act has provisions that allow citizens to save taxes and claim deductions under various sections. For example, income tax exemption for women is available on the premium paid for a health insurance policy under Section 80D of the I-T Act. The limit is up to Rs 25,000 for a policy that covers self, spouse, and dependent children. Moreover, an additional deduction is an available amount of Rs 25,000 for parents below 60 years of age covered in the policy; and Rs 50,000 for senior citizen parents covered in the policy.
By making the right investment choices and availing of tax exemptions, women can minimise their tax liability. Women can avail of the tax benefit by opting for a health cover. Several lifestyle diseases are affecting many young adults, including women. Besides, health risks increase as women grow older. These factors hint at the need for a comprehensive medical insurance policy. Visit the website to choose the best health policy today.
Disclaimer: The above information is for reference purposes only. The tax exemptions are subject to the rules and regulations of the Income Tax Act of India 1961.
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