While Indian women are 48% of the population, there are still several cases of economic backwardness experienced by the gender quite often in the country. About 1/3rd of women who are 15 years or older are actively working or seeking work. In such a scenario, having financial knowledge for a healthier financial future is imperative.

Therefore, in this blog, we have highlighted some of the unique gem rules of the Income Tax Act of India that will help you save on taxes a considerable time. So, read out all the details and make sure to implement these strategies while you are filing your taxes in the assessment year.

1. Surcharge Limit for Women Taxpayers

Women taxpayers whose annual income exceeds Rs 50 lakhs will have to pay an additional surcharge according to their income slab. While the surcharge varies according to the different income slabs, for women taxpayers, u/s 111A, 115AD, & 112A, you only have to pay a surcharge of up to 15%. So, make sure to keep this thing in mind while you file your taxes from now on.

2. Maximise deductions u/s 80C

You can now avail tax deductions of up to Rs. 1.5 lakhs by utilising the various tax-saving tools listed under section 80C. As per the regulations of this section, you can invest in ELSS (Equity Linked Savings Scheme), Public Provident Fund, National Savings Certificate and more such tools to save big on your income tax. For a woman taxpayer, these are one of the best ways to save for your future while making sure to get deductions on taxes.

3. Invest in Sukanya Samriddhi Yojana

Being a woman, it is imperative to look after your girl child. If you have a daughter below the age of 10, do make sure to dedicate your income to investing in this substantial tax-saving tool. SSY was launched with the campaign “Beti Bachao Beti Padhao.” As a legal guardian of a girl child, you are eligible to save up to Rs. 1.5 lakhs and even earn returns of 8% annually. The interest accrued against the savings amount is non-taxable, and the maturity amount is also tax-free U/s 10.

4. Allowance for HRA

Section 10 (13A), rule number 2A empowers salaried individuals to claim exemptions for House Rent Allowance (HRA). As HRA represents a significant portion of your salary, it's vital to navigate your company's policies to make the most of these benefits.

Let's explore the available deductions:

1. Actual HRA received: Claim the exact amount of HRA provided by your employer.
2. Percentage of [basic salary + DA] for metro and non-metro residents: If you live in a metro city like Delhi, Kolkata, Mumbai, or Chennai, you can claim 50% of your basic salary plus Dearness Allowance (DA). For those in non-metro areas, the percentage decreases to 40% of [basic salary + DA].
3. Actual rent paid (-) 10% of basic salary + DA: Deduct the actual rent you pay minus 10% of your basic salary plus DA. This formula ensures that individuals with higher HRA can still benefit from tax advantages, even if their rent exceeds prescribed limits.

5. Education Loan Benefits for Women

Indian banks offer several education loan schemes for women. The best part for a woman taxpayer here is that if you have availed such a loan, the interest paid on the loan can be claimed for tax exemption benefits. The loan you took could be for yourself, your child or your spouse. Exemptions can be claimed on the payment of interest without any upper limit on the amount.

Final Thoughts

Women taxpayers in India have several tax-saving opportunities that they can take advantage of in 2023. By knowing the surcharge limit, investing in Sukanya Samriddhi Yojana, maximising tax deductions u/s 80C and taking advantage of study loan benefits, women taxpayers can reduce their tax liability significantly. These tax-saving tips help save money and enable womankind to take control of their financial future.

It is crucial to stay updated with the latest tax-saving strategies and understand how they can benefit you. At TaxNodes, we are committed to providing informative and actionable advice on tax planning and financial management. We continuously strive to come up with new and relevant topics that can guide you toward a better financial future. With TaxNodes by your side, you can be sure you are making the most of your hard-earned money and achieving your financial goals.

byRhea Tripathy

Meet Rhea Tripathy, a word wizard with a pen in one hand and a paintbrush in the other. By day, she slays as a content writer and by night, she indulges in her artistic passion. With a keen eye for the markets and a knack for literature, this certified trader brings her sharp mind and creative flair to everything she does. When she's not crafting clever content, you'll find her analyzing the latest market trends or getting lost in a good book.

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