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In India, income tax is progressive in nature. So the more you earn, the more income tax you have to pay. It may sound like a complicated concept, but it is easy to understand. Apart from a person’s income, their income tax liability also depends on their age. For the purpose of taxation, everybody is broadly divided into three age groups – Under 60, between 60 and 80 (senior citizens), over the age of 80 (super senior citizens). So, the Income Tax Department created a number of tax slabs to quickly understand how much income tax a person needs to pay. Based on the income tax slab you fall under, you can quickly understand your taxable income calculation. Earlier, there were separate income tax slabs for women and men. However, since 2013, common tax slabs are prescribed for both men and women. Let’s take a look at the income slabs and tax exemptions for women.
An income tax slab talks about the tax rate applicable to a person depending on their age and income. While the conditions remain the same throughout, the tax rate may change with each Union Budget. Whenever no changes are mentioned in the budget, the tax rate remains the same as the previous year. The existing tax slabs for women who claim deductions under their salary are as follows:
Income Tax Slab |
Income Tax Rate |
Up to INR 2,50,000 per year |
No tax |
Between INR 2,50,001 to INR 5,00,000 |
5% of the income above INR 2,50,000 |
Between INR 5,00,001 to INR 10,00,000 |
INR 12,500 + 20% of the income over INR 5,00,000 |
Above INR 10,00,000 |
INR 1,12,500 + 30% of the income over INR 10,00,000 |
Apart from the rates mentioned above, a health and education cess of 4% will be applied to your total taxable amount.
Income Tax Slab |
Income Tax Rate |
Up to INR 3,00,000 per year |
No tax |
Between INR 3,00,001 to INR 5,00,000 |
5% of the income above INR 3,00,000 |
Between INR 5,00,001 to INR 10,00,000 |
INR 10,000 + 20% of the income over INR 5,00,000 |
Above INR 10,00,00 |
INR 1,10,000 + 30% of the income over INR 10,00,000 |
Apart from the rates mentioned above, a health and education cess of 4% will be applied to your total taxable amount.
Income Tax Slab |
Income Tax Rate |
Up to INR 5,00,000 |
No tax |
Between INR 5,00,001 to INR 10,00,000 |
20% of the income over INR 5,00,000 |
Above INR 10,00,00 |
INR 1,00,000 + 30% of the income over INR 10,00,000 |
Apart from the rates mentioned above, a health and education cess of 4% will be applied to your total taxable amount.
Additionally, the Union Budget for 2019-2020 proposed a 100% rebate under Section 87A for those who earn an income up to INR 5,00,000 per year.
In 2021, the Union Budget proposed new income tax slabs vide sec 115BAC for taxpayers who do not avail of any deductions subject to provisions of sec. 115BAC under the Income Tax Act. The new tax slabs are as follows:
Annual Income |
Rate of Tax |
Up to INR 2,50,000 |
None |
From INR 2,50,001 to INR 5,00,000 |
5% on the income above INR 2,50,000 (Tax rebate u/s 87A is available) |
From INR 5,00,001 to INR 7,50,000 |
INR 12,500 + 10% on the income above INR 5,00,000 |
From INR 7,50,001 to INR 10,00,000 |
INR 37,500 + 15% on the income above INR 7,50,000 |
From INR 10,00,001 to INR 12,50,000 |
INR 75,000 + 20% on the income above INR 10,00,000 |
From INR 12,50,001 to INR 15,00,000 |
INR 1,25,000 + 25% on the income above INR 12,50,000 |
Over INR 15,00,000 |
INR 1,87,500 + 30% on the income above INR 15,00,000 |
Apart from the rates mentioned above, a health and education cess of 4% will be applied to your total taxable amount.
Surcharge is levied over and above the tax subject to marginal relief at following rates if total income exceeds specified limits:
Total Income |
Rate of surcharge |
Exceeding INR 50 lakhs but not exceeding INR 1 Cr. |
10 % |
Exceeding INR 1Cr. but not exceeding INR 2 Cr. |
15% |
Exceeding INR 2Cr. but not exceeding INR 5 Cr. |
25% |
Exceeding INR 5 Cr. |
37% |
*
In India, the Income Tax department views income under five broad categories as taxable income. Your taxable income gets calculated after considering your income from:
It may seem like a lot of tax, but the Income Tax Act, 1961, also allows a tax rebate or exemption if you meet certain conditions.
A woman can enjoy tax exemptions under various sections of the Income Tax Act. Let’s see what they are:
Here, you can get a tax exemption of up to INR 1,50,000 per year for the money you invest in:
The section outlines an exemption of up to INR 1,50,000 against money put into pension and annuity plans.
Women can get an exemption up to INR 10,000 per year on the interest they earn by way of interest on deposit (other than time deposit).
Senior citizen women can get an exemption up to INR 50,000 per year on the interest they earn on deposits both saving and time deposits.
Women can enjoy exemptions for the premiums they pay for health insurance policies for themselves, their spouse, dependent children and parents.
The interest you pay on an education loan gets deducted from your taxable income.
Individuals who do not receive a House Rent Allowance can enjoy this exemption on rent payments.
Under this section, women can get exemptions for the medical treatment of a dependant, being person with disability.
Here, women can enjoy tax exemptions against payment for medical treatments of themselves or dependents who suffer from specific diseases. The maximum exemption is INR 40,000 for those below the age of 60 and INR 1,00,000 for those above the age of 60.
Contributions to political parties also do not attract any tax. There is no limit on the exemption amount as long as the contribution has not been made in cash.
Contributions to charitable organisations and certain relief funds are also exempt from taxation. In certain cases, only a 50% exemption is allowed. In others, 100% exemption is allowed.
Here, you can enjoy exemptions on investments you make towards equity products. The exemption is limited to INR 25,000 or 50% of the investment amount, whichever is lower.
A: No. Women had different income tax liabilities until 2012. Since 2013, the income tax slab depends solely on the individual’s age and income.
A: The date to file taxes varies. Those who require a mandatory audit can file their taxes later, while individuals must file their taxes earlier.
A: No, individuals cannot get any tax rebate on the premium paid for a group health policy. But, the premiums paid for individual health plans offer considerable tax exemptions.
ARN: ED/09/22/29483
We help you to make informed insurance decisions for a lifetime.
Tax benefits/deductions are subject to provisions of the Income Tax Act, 1961. Tax Laws are subject to change from time to time.
The customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.