- Date : 20/04/2023
- Read: 3 mins
Women are increasingly participating and even bettering men in all walks of life. The income in women's households also increased. It leads women to think of tax-saving options to maximise their savings.
CEO and Co-Founder of Tax2win speak about how the tax slabs for men and women are standard now and how they differed in 2012-2013. Another expert, Taxbuddy's Sujit Bangar, said the slabs favoured women during the mentioned time. However, it has been made legal for both genders. Bangar believes all employed and salaried women must control their taxes and expenses. In addition, women must be aware of income tax-saving options and the available deductions.
Here are some income tax-saving options that salaried women can avail of:
Home Loan Repayment
Best Income tax-saving options include tax deductions on the interest and principal components if you have taken a home loan with your spouse. Rs. 1.5 lac tax deduction is available for principal repayment under Sec 80C of the Income Tax Act, 1961. Section 24 allows a deduction of Rs. 2 lac on interest repayments. Upon fulfilling certain conditions, you can also claim additional income tax-saving benefits of up to Rs. 1,50,000 under Sec 80EEA and Rs. 50,000 under Sec 80EE. Sec 80EE gives a tax benefit of up to Rs. 50,000 if you are a first-time homebuyer with a loan value of less than Rs. 35,00,000 and property cost equal to or less than Rs. 50,00,000.
Savings Account
Another income tax-saving option is the Rs. 10,000 deduction under Section 80TTA. It is an option available on savings accounts and the interest earned on them. Many banks offer women-centric plans that have benefits like zero balance accounts. Senior citizen women get deductions under Section 80TTV up to Rs. 50,000 for savings accounts and term deposits interest.
Also Read: This is why all women should get health insurance.
House Rent Allowance (HRA)
An employer offers this on the salary, and you can avail of tax benefits if you pay house rent. The HRA exemption is a minimum of:
- The total amount of received HRA
- 50% of your salary if you live in metro cities
- Excess annual rent paid over your basic salary by 10%
Education Loan
If you have availed of a higher education loan on behalf of your children, spouse, or yourself, you can get an interest component tax deduction under Section 80E. You can claim it for eight years maximum.
Other Tax-Saving Options
Tax exemption for women includes receiving Rs. 25,000 claims under Section 80D on premiums paid for children, spouses, or yourself on health insurance. There are other income tax-saving options for women, such as:
- National Pension Scheme (NPS)
- Unit Linked Insurance Plan (ULIP)
- Sukanya Smriddhi Yojana (SSY)
- National Saving Certificate (NSC)
- Tax-Saving Fixed Deposits (FDs)
- Employee Provident Fund (EPF)
- Equity Linked Saving Scheme (ELSS)
- Public Provident Fund (PPF)
Salaried women need to learn about the income tax rules and maximise savings. While we consider women excellent in managing savings, knowing income tax-saving options will help them better manage their salaries and income.
CEO and Co-Founder of Tax2win speak about how the tax slabs for men and women are standard now and how they differed in 2012-2013. Another expert, Taxbuddy's Sujit Bangar, said the slabs favoured women during the mentioned time. However, it has been made legal for both genders. Bangar believes all employed and salaried women must control their taxes and expenses. In addition, women must be aware of income tax-saving options and the available deductions.
Here are some income tax-saving options that salaried women can avail of:
Home Loan Repayment
Best Income tax-saving options include tax deductions on the interest and principal components if you have taken a home loan with your spouse. Rs. 1.5 lac tax deduction is available for principal repayment under Sec 80C of the Income Tax Act, 1961. Section 24 allows a deduction of Rs. 2 lac on interest repayments. Upon fulfilling certain conditions, you can also claim additional income tax-saving benefits of up to Rs. 1,50,000 under Sec 80EEA and Rs. 50,000 under Sec 80EE. Sec 80EE gives a tax benefit of up to Rs. 50,000 if you are a first-time homebuyer with a loan value of less than Rs. 35,00,000 and property cost equal to or less than Rs. 50,00,000.
Savings Account
Another income tax-saving option is the Rs. 10,000 deduction under Section 80TTA. It is an option available on savings accounts and the interest earned on them. Many banks offer women-centric plans that have benefits like zero balance accounts. Senior citizen women get deductions under Section 80TTV up to Rs. 50,000 for savings accounts and term deposits interest.
Also Read: This is why all women should get health insurance.
House Rent Allowance (HRA)
An employer offers this on the salary, and you can avail of tax benefits if you pay house rent. The HRA exemption is a minimum of:
- The total amount of received HRA
- 50% of your salary if you live in metro cities
- Excess annual rent paid over your basic salary by 10%
Education Loan
If you have availed of a higher education loan on behalf of your children, spouse, or yourself, you can get an interest component tax deduction under Section 80E. You can claim it for eight years maximum.
Other Tax-Saving Options
Tax exemption for women includes receiving Rs. 25,000 claims under Section 80D on premiums paid for children, spouses, or yourself on health insurance. There are other income tax-saving options for women, such as:
- National Pension Scheme (NPS)
- Unit Linked Insurance Plan (ULIP)
- Sukanya Smriddhi Yojana (SSY)
- National Saving Certificate (NSC)
- Tax-Saving Fixed Deposits (FDs)
- Employee Provident Fund (EPF)
- Equity Linked Saving Scheme (ELSS)
- Public Provident Fund (PPF)
Salaried women need to learn about the income tax rules and maximise savings. While we consider women excellent in managing savings, knowing income tax-saving options will help them better manage their salaries and income.
