Income Tax Slab for Women

All about Income Tax Slab for Women

In India, income tax can be classified as progressive in nature. It means that the rate of increase in income tax payable is directly proportional to the increase in an individual’s income.

Sounds complicated?

Well, it simply means that the tax liability of a person increases with an increase in their income. Apart from their income, it also depends on their age.

For the purposes of taxation, taxpayers have been classified into three broad groups –

Individuals below 60 years of age.
Individuals between 60 and 80 years of age (senior citizens).
Individuals above 80 years of age (super senior citizens).

Previously, the basic tax exemption limit was segregated for male and female taxpayers in India. Women enjoyed a higher basic exemption limit when it came to tax payment on their income earned.

However, since 2012-13, this difference in basic exemption limit has been away with, and common tax slabs have been introduced for both men and women, with respect to their income and age.

Following is a detailed explanation of income tax slabs for women – below 60 years of age, senior citizens and super senior citizens.

A detailed look at the Income Tax Slabs for Women

Income tax slabs refer to the applicable tax rates on the basis of one’s income and age. Now, while the categorisation process remains the same, the slabs are subject to change during each Union Budget. For a budget where changes are not specifically mentioned, the tax rates remain the same as that of the previous financial year.

Following are the various tax slabs for women as applicable for the financial year 2019-20.

Income Tax Slab for Women (below 60 years of age) - FY 2019-20

Income Tax Slabs	Rate of Tax
For income up to ₹2.5 Lakh	Nil
For income ranging between ₹2,50,001 and ₹5 Lakh	5% of the total income above ₹2,50,000
For income ranging between ₹5,00,001 and ₹10 Lakh	₹12,500+ 20% of the total income above ₹5 Lakh
For income above ₹10 Lakh	₹1,12,500+ 30% of their total income above ₹10 Lakh

Apart from this, you will also be levied with an additional 4% health and education cess, which will be applicable to your total taxable amount.

Income Tax Slab for Women (Senior Citizens) - FY 2019-20

Income Tax Slabs	Rate of Tax
For income up to ₹3 Lakh	Nil
For income ranging between ₹3,00,001 and ₹5 Lakh	5% of the total income above ₹2,50,000
For income ranging between ₹5,00,001 and ₹10 Lakh	₹10,000+ 20% of the total income above ₹5 Lakh
For income above ₹10 Lakh	₹1,10,000+ 30% of their total income above ₹10 Lakh

You will also be levied with an additional 4% Health and Education cess on your total taxable amount.

Income Tax Slab for Women (Super Senior Citizen) - FY 2019-20

Income Tax Slabs	Rate of Tax
For income up to ₹5 Lakh	Nil
For income ranging between ₹5,00,001 and ₹10 Lakh	20% of the total income above ₹5 Lakh
For income above ₹10 Lakh	₹1,00,000+ 30% of their total income above ₹10 Lakh

Like the two categories above, women above 80 years of age will also be liable to pay an additional 4% health and education cess on their total taxable amount.

Additional Surcharge

Women with an annual income higher than Rs. 50 Lakh will also be levied with a surcharge according to the announcements made in the 2019 Union budget.

The surcharges applicable are as follows:

Taxable Income	Surcharge rate on Income Tax
For individuals with an income of above ₹50 Lakh and below ₹1 Crore	10%
For individuals with an income of above ₹1 Crore and below ₹2 Crore	15%
For individuals with an income of above ₹2 Crore and below ₹5 Crore	25%
For individuals with an income above ₹1 Crore	37%

The Government of India also provides income tax rebate for women available in accordance with Section 87A of the Income Tax Act, 1961. As announced in the 2019 Union Budget, women taxpayers in India with a total income of up to Rs. 5 Lakh can avail a rebate of up to Rs. 12,500 on their taxes.

Thus, those with a total tax payable below Rs. 12,500 will be exempt from tax payment for FY 2019-20.

How is the Taxable Income Calculated?

The income tax department of India has fixed five heads of income under which your taxable income is calculated. These are:

Income from salary.
Income from house property.
Income from business and profession.
Income from capital gains.
Any income from other sources which can include interest accumulated from fixed deposits, savings accounts, etc.

Now, if you are thinking that your tax liabilities are mounting up – don’t worry!

The Income Tax Act has put forth certain income tax exemptions for women and all other taxpayers that can help you to save a chunk of your income. These exemptions have been put in place primarily to inculcate the habit of savings among Indians.

Let us take a look at the income tax exemptions you can avail, as mandated by the Income Tax Act, 1961.

Income Tax Exemptions for Women

Following are some of the exemption limits applicable for income tax payment, as mentioned under Section 80 of the Income Tax Act:

Section 80C - You can avail an exemption of up to ₹1.5 Lakh for your earnings from the following:

5-year tax-saver fixed deposits.
National Savings Certificate.
National Pension Scheme.
Equity Linked Savings Scheme.
Employees Provident Fund.
Senior Citizens Savings Schemes.
Sukanya Samriddhi Yojana, etc.

Section 80CCC – Exemption on the deposited amount in insurance annuity plans. The exemption limit under this section is set at ₹1,50,000.

Section 80TTA – An exemption of up to ₹10,000 on interest earned from the various bank savings account.

Section 80D – Exemption on the payment of health insurance policy premium for self, spouse, dependent children, parents, etc. The limit for this exemption is set at:

₹25,000 for self, spouse and dependent children
₹25,000 (for self, spouse and dependent children) + ₹25,000 for parents
₹25,000 (for self, spouse and dependent children) + up to ₹50,000 (for parents above 60 years of age)
Up to ₹50,000 (self, spouse and dependent children with the eldest member above 60 years of age) + up to ₹50,000 (for parents above 60 years of age)

Know more about Health Insurance with Maternity Benefits

Section 80E – This section allows an exemption on the total interest paid for any education loan. There is no limit to this exemption.

Section 80GG – This exemption is applicable on rent payment if you don’t receive House Rent Allowance. The limit to this exemption is set at the lower amount between the following:

Total rent paid – 10% of your total income.
25% of your total income.
₹5,000 per month.

Section 80DDB – This exemption is valid for the medical treatment of any dependent individual who is suffering from specific diseases. The limit for this exemption is set at up to ₹40,000 for individuals below 60 years of age. If the age of the dependent individuals is above 60 years, you can avail a tax exemption of up to ₹1,00,000.

Section 80GGC – This exemption is available on contribution to political parties. There is no limit to the exemption if the payment is made through methods other than cash.

Section 80G – You can avail exemptions for contributions to charitable institutions and a few relief funds. For some cases, you can avail an exemption of up to 50% of your donation while contribution to other funds allows 100% tax exemptions.

Section 80CCG – With this section, you can avail exemptions on your investments in the equity products under the Rajiv Gandhi Equity Scheme. In this case, exemptions are the lower amount between:

₹25,000.
50% of your investment amount in equity schemes.

Section 80DD – This section allows exemptions on medical treatment for a handicapped or dependent family member. Following are the exemption limits under this section:

If the handicapped individual has a bodily or mental disability of 40-80%, then you will be able to avail an exemption of up to ₹75,000.
If the bodily or mental disability is above 80%, then the tax exemption limit is set at ₹1,25,000.

Section 80TTB – Under this section, you will be able to avail an exemption on the interest earned by senior citizens. The limit for this exemption is set at up to ₹50,000.

Know more about:

Therefore, with such exemptions and benefits in place, women can reduce their tax liabilities to quite an extent by making suitable investments and expenses. Even though these investments are mostly long-term in nature, they can be extremely beneficial when it comes to saving taxes.

So, before filing your tax returns for FY 2019-20, make sure you check the IT slabs for women for FY 2019-20 and all the applicable exemptions to ensure that you are well-informed about the entire system of taxation.

FAQs about Income Tax Slab for Women

✓ Are income tax liabilities different for women in India?

Previously, the basic exemption limit for taxation on women was higher than that of male taxpayers in the country. Since 2012-13, this segregation has been abolished with tax slabs being determined solely based on an individual’s income and age.

✓ Is tax filing due date the same for every taxpayer?

No, the due date for filing income tax varies. For individual taxpayers, the due date is set on 31st July of the assessment year.

✓ Are tax benefits available on group health insurance policies?

No, tax exemptions are not available on group health insurance policies. However, if you have an independent health insurance policy in addition to group one, you can avail tax benefits on the former one.