Tax Slab for Women: Exemptions and Rebates Explained

2025-05-02

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In India, the general conception of people over the years has been very regressive about women. They are often associated with doing household work. But this opinion is steadily changing. Women are now proving themselves in every field possible. They are excelling in business, service, sports, etc. Women play a pivotal role in shaping the finances in their household, too. Around the world as well, women now hold the top-most positions in some of the biggest organiszations. But in India, their participation economically is not at the expected level.

Women’s participation in both the secondary and tertiary sectors has been considerably increased.

The government, to increase women's participation in the workforce in India and empower them, also takes up certain initiatives from time to time.

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Income Tax Slabs for Women

Starting with the Union Budget of 2020, individual taxpayers, including women taxpayers, have the option of sticking to any of the following tax regimes:

The old tax regime, which included a standard deduction and deductions from gross total income (Sections 87A and 80C, for example).
New Income Tax System with No Deductions but Lower Slab Rates

The tax rates that women had to pay were lower than their male counterparts. But to promote equality, this system was stopped by the Income Tax Department. So, since the FY of 2012–13, there has been no discrimination in rates. Men and women both face a similar tax slab rate.

Click Here to use the Income Tax Calculator

Here are the old income tax slab rates for women, followed from 2013.

For women residents who are below the age of 60 years:

Annual Income (In Rs)	Tax Rate
0- Rs 2.5 lakh	0%
2.5 lakh-5 lakhs	5%
5 lakh-10 lakhs	20%
Above Rs 10 lakhs	30%

For women residents who are between the age group of 60-80 years (senior citizens)

Annual Income (In Rs)	Tax Rate
Up to Rs 3 lakhs	0%
Rs 3 lakh - Rs 5 lakhs	5%
Rs 5 lakh - Rs 10 lakhs	20%
Above Rs 10 lakhs	30%

For women residents who are over the age of 80 years (super senior citizens)

Annual Income (In Rs)	Tax Rate
Up to Rs 5 lakhs	0%
Rs 5 lakh - Rs 10 lakh	20%
Above Rs 10 lakhs	30%

New income tax regime for women taxpayers of any age:

Annual Income (In Rs)	Tax Rate
Up to Rs 4 lakhs	0%
Rs 4 lakhs - Rs 8 lakhs	5%
Rs 8 lakhs - Rs 12 lakhs	10%
Rs 12 lakhs - Rs 16 lakhs	10%
Rs 16 lakhs - Rs 20 lakhs	20%
Rs 20 lakhs - Rs 24 lakhs	25%
Above Rs 25 lakhs	30%

4% H.E.C i.e., health and education cess are also applicable. This amount is charged over and above the tax slab rate.

Exemptions Available for Women

Due to the tax rate being the same, there are not many exemptions that are specifically available to women. However, women can avail of certain deductions. Let us look at them in the following section.

Deductions under Section 80C: Section 80C of the Income Tax allows for the deduction of tax if you have purchased a certain investment. Some of the eligible investments are:
- Life insurance policies (Term insurance plan, ULIP, Moneyback plan, etc)
- Sukanya Samriddhi Yojana (SSY)
- Public Provident Fund (PPF)
- New/National Pension Scheme (NPS)
- Employee Provident Fund (EPF)
- Equity Linked Savings Scheme (ELSS)
Deduction under Section 80D: You can avail of a deduction of up to Rs. 25000 for the premium that you pay towards your health insurance policy. The policy that you purchase can cover you, your husband, and your children as well. You can avail of a deduction of an extra Rs 25,000 if the policy covers your parents aged less than 60 years.
Deduction under Section 80E: This deduction relates to the education loan. The exemption is available on the interest that you pay towards your education loan. You can claim a deduction for up to 8 years or the duration of the loan, whichever is less.

Other Deductions Available

As a woman taxpayer, you can also avail benefits of discounted tax rates on certain expenses. Here are the three important expenses where you can avail beneficial tax rates:

Concession on Stamp Duty: Stamp duty charges are incurred when there is a transfer of property. If the property is in the name of a woman then it will attract low stamp duty charges. These charges are different for different states. For example, in Delhi, the charge for males is 6% while for females it is 4%.
In Uttar Pradesh as well, stamp duty charges for women are 6% as opposed to 7% for males.
Home Loan Interest: The rate of interest payable on a home loan is also lower for women. Banks usually charge a lower rate if the house being purchased is registered in the name of a female. Home loans are subsidised at a rate of 0.05 to 0.1%. That is, the home loan is 0.05% lower than the regular rate.
Property Tax Rebate: As a female taxpayer, you can also avail discounts on the local property tax rates. These rates are determined by the local municipal corporations. So, do check the rates for female property owners before registering the property.

Life Insurance Plans to Lower your Income Tax Liability

To reduce your tax liability as well as to promote the habit of investing in people, the government has allowed tax deductions for certain investments.

Here are some options from Canara HSBC Life Insurance that you can consider to lower your income tax liability:

Promise4Growth Plus: This plan is a unit-linked insurance plan that offers you live coverage as well as an investment opportunity. With this option, you invest and create a huge corpus as well as reduce your tax liability. Invest 4G offers funds that suit everyone. These are the following:
- Equity Funds
- Debt Funds
- Hybrid Funds
- Liquid Funds
  
  You can choose the funds according to your risk preference. This plan is also eligible for a tax deduction of up to Rs 1.5 lakhs u/s 80c of the Income Tax Act 1961. The maturity or the death benefit is also tax-free.
Guaranteed Savings Plans: As the name suggests, this plan provides you with guaranteed returns on maturity. This plan ensures the full safety of your corpus and is one of the safest options in the market. Thus, you do not have to worry about the variability of the returns. This plan is also eligible for a tax deduction of up to Rs 1.5 lakhs u/s 80c.
Moneyback Advantage Plan: This plan offers you to cover for your life as well as helps in ensuring regular payouts. The moneyback advantage plan will provide you with a guaranteed cash flow. You will start receiving money while your policy is still running.

In this plan, you will get 15% of your sum assured at the 5th, 9th and the 13th year of your policy. The rest of the amount (55%) will be given to you at maturity. You will also receive bonuses.

The whole sum assured will be paid if you die during the term.

Which Income Tax Slab Women Should Use?

You can use either of the two income tax slabs to estimate your tax. However, a lot depends on how you invest your savings. If you are using tax-saving investments, you should stick to the old income tax regime. However, if you are investing aggressively and tax savings are not important to you, the new tax regime is a better choice.

Remember, you cannot claim deductions or set-off losses from other heads of income with your salary or business income. Also, when you switch between the income tax regimes, the benefits of the previous tax regime do not transfer to the new one. So, choose carefully and keep investing.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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