Income Tax Slab for Women: Exemptions and Rebates

FAMILY HEALTH INSURANCE



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 provides details for the income tax slab for women in India and the exemptions and rebates they can avail. 

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 2020-21, the new tax regime was announced under which taxpayers had to forgo certain tax deductions and exemptions

The New Income Tax Slab for FY 2020-21

Income Range Applicable Tax Rate
Up to Rs.2.5 Lakh Nil
Rs.2,50,001 to Rs.5,00,000 5% of the total income that is exceeding Rs.2.5 lakh
Rs.5,00,001 to Rs.7,50,000 10% of the total income that is exceeding Rs.5 lakh
Rs.7,50,001 to Rs.10,00,000 15% of the total income that is exceeding Rs.7.5 lakh
Rs.10,00,001 to Rs.12,50,000 20% of the total income that is exceeding Rs.10 lakh
Rs.12,50,001 to Rs.15,00,000 25% of the total income that is exceeding Rs.12.5 lakh
Income exceeding Rs.15,00,001 30% of the total income that is exceeding 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 2019, 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 2020-21, 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 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 2019-20

  • 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 1,10,000 + 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 2019

Mentioned below is the slab:

Income Range Tax Rates
Income above Rs 50 Lakh and below Rs 1 Crore 10%
Income above Rs 1 Crore and below Rs 2 Crore 15%
Income above Rs 2 Crore and below Rs 5 Crore 25%
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 available of amount 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 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.