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Income Tax Slab For Women For FY 2023-24: Tax Limit And Exemptions

Updated on: Jun 5th, 2024

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8 min read

The Indian government offers various benefits and reliefs to women in the form of reduced interest rates on home loans, property tax rebates, stamp duty concession, etc., to empower women. Even on the tax front, women enjoyed higher basic exemption limits as compared to men. However, from FY 2012-13 this system was abolished by the government, and a common tax slab was introduced for both men and women. Therefore, there is no specific benefit or deduction for women under the Income Tax Act.

Income Tax Slabs

In India, under the old tax regime, the tax slabs and rates depend upon the age and income of the taxpayer. For income tax purposes an individual can be categorised into:

  • Individuals - Residents below 60 years of age and Non-Residents
  • Senior citizens - Individuals over 60 years of age
  • Super senior citizens - Individuals over 80 years of age

Income tax slab for women below 60 years of age and non-resident women for FY 2022-23:

Income range

Income tax rate

Up to Rs. 2,50,000

Nil

Rs. 2,50,001 to Rs. 5,00,000

5% of the total income which exceeds Rs. 2,50,000

Rs. 5,00,001 to Rs. 10,00,000

Rs. 12,500 + 20% on income exceeding Rs. 5,00,000

Above Rs. 10,00,000 

Rs. 1,12,500 + 30% on income exceeding Rs. 10,00,000

Income tax slab for senior citizen women over 60 years of age:

Income slab (in Rs.)

Income tax rate

Up to Rs. 3,00,000

Nil

3,00,001 to 5,00,000

5% of income over Rs. 3,00,000

5,00,001 to 10,00,000

Rs. 10,000 + 20% of income exceeding Rs. 5,00,000 

Above 10,00,000

Rs. 1,10,000 + 30% of income exceeding Rs. 10,00,000

Income tax slab for super senior citizen women over 80 years of age:

Income slab (in Rs.)

Income tax rate

Up to Rs. 5,00,000

Nil

5,00,001 to 10,00,000

20% of income over Rs. 5,00,000

Above 10,00,000

Rs. 1,00,000 + 30% of income over Rs. 10,00,000

Alternatively, women (including senior and super senior citizens) can opt for the new tax regime where a concessional rate of tax is charged. However, certain exemptions and benefits need to be foregone to avail the benefit. The tax slab rate as per the new tax regime is as follows:

Income range

Income tax rate

Up to Rs. 3,00,000

Nil

Rs. 3,00,000 to Rs. 6,00,000

5% on income exceeding Rs. 3,00,000

Rs. 6,00,000 to Rs. 9,00,000

Rs. 15,000 + 10% of income exceeding Rs. 6,00,000

Rs. 9,00,000 to Rs. 12,00,000

Rs. 45,000 + 15% of the income exceeding Rs. 12,00,000

Rs. 12,00,000 to Rs. 15,00,000

Rs. 90,000 + 20% of the income exceeding Rs. 12,00,000

Above Rs. 15,00,000

Rs. 1,50,000 + 30% of the income exceeding Rs. 15,00,000

In addition to the above income tax rates, health and education cess of 4% is charged on the income tax. In the case of lower income class of women, where income is up to Rs. 7 lakhs, tax rebate up to Rs. 25,000 can also be availed in case of the new regime whereas, in case of the old regime where income is up to Rs 5 lakhs, tax rebate up to Rs. 12,500 is available.

Surcharge rates are also applicable if income exceeds the threshold limit. The surcharge is applied to the total amount of tax.

Total income 

Surcharge rate

> Rs. 50 Lakhs

10% 

> Rs. 1 crore

15%

> Rs. 2 crores

25%

> Rs. 5 crores (Note 1)

37%

Note: As per Budget 2023, in case of new tax regime surcharge on income exceeding Rs 5 crores will be limited to 25%

Benefits And Exemption For Women Taxpayers In India

Women can save their taxes by claiming certain benefits and tax rebates provided in the Act. Income tax exemptions and benefits available to women taxpayers are enumerated below.

Section

Eligible investment or expense

Threshold limit for Deductions 

80C

  • National Savings Certificate
  • Public Provident Fund
  • Life insurance premium
  • Repayment of housing loan
  • Tuition fees
  • Sukanya Samridhi Scheme
  • Senior Citizen Saving Scheme

 

Rs. 1,50,000

80CCC

Contribution to specified pension fund

80CCD(1)

Contribution towards National Pension scheme (NPS)

80CCD(1B)

Additional deduction for NPS contribution

Rs. 50,000

80D

  • Health insurance premium
  • Preventive health scheme

Rs. 25,000 (self, spouse and children)

Rs. 50,000 (senior citizens self/parents)

Rs. 5,000 (Preventive health checkup)

80DD

Medical treatment for differently-abled dependent (spouse, children, parents, brother and sister)

Rs. 75,000

Rs. 1,25,000 in case of severe disability

80DDB

Medical treatment of specified ailment or disease

Rs. 40,000 for self and dependents

Rs. 1,00,000 for senior citizens

80E

Interest payment of loan taken for higher education

Amount of Interest paid

80EEA

Interest paid on loan for residential house

Rs. 1,50,000

80EEB

Interest paid on loan for electrical vehicle

Rs. 1,50,000

80G

Donations to eligible charitable and religious institutions, etc.

50% or 100% of the donation 

80GG

House rent paid 

Whichever is less:

  • Rs 5,000 per month
  • Rent amount minus 10% of total income
  • 25% of the total income

80GGC

Donation made to electoral trust or political party

Amount of donation

80TTA

Saving bank interest

Rs. 10,000

80TTB

Interest on bank deposits received by senior citizens

Rs. 50,000

However, if a woman taxpayer opts for the new tax regime these deductions need to be foregone.

In addition to the above benefits, home buyers are also eligible for a deduction of Rs. 2,00,000 under section 24(b) for interest paid on home loans only if you opt for the old regime. 

Some of the benefits allowed to salaried women employed -

  • Standard deduction of Rs. 50,000
  • House Rent Allowance   
    The amount of deduction for HRA is:
    • Actual HRA received
    • 50% of basic salary + DA (for those living in metro cities)
    • 40% of basic salary + DA (for those living in non-metro cities)
    • Excess of rent paid over 10% of basic salary
  • Leave Travel Concession, etc.

Here are the highlights of the personal income tax provisions in the 2023 Union Budget:

1. The benefit of a standard deduction of ₹50,000 has been extended to both salaried individuals and pensioners in the new tax regime.
2. The new tax regime has become the default system, but taxpayers have the option to continue calculating and paying taxes as per the old regime.
3. The highest surcharge imposed on personal income tax has been significantly reduced from 37% to 25%.
4. For non-government salaried employees, the limit on leave encashment upon retirement has increased from ₹3 lakh to ₹25 lakh.
5. The deduction from capital gains on investment in a residential house is now limited to ₹10 crore.
6. Income from insurance policies (excluding ULIP) with an annual premium or aggregate premium exceeding ₹5,00,000 will be subject to taxation. This income will fall under the head "Income from Other Sources". Deductions will be allowed for the premium paid if no prior deduction has been claimed under other provisions of the Income Tax Act. This new rule applies to policies issued on or after April 1, 2023. However, such income will be exempt if received upon the insured person's death.

Conclusion 

In summary, the Indian government offers various benefits and reliefs to empower women, but there are no specific deductions or advantages exclusively for women under the Income-tax Act,1961 since the introduction of a common tax slab for both genders in 2012-13. However, women taxpayers need to be aware of the tax slabs applicable, tax exemptions, and deductions when planning finance.

Frequently Asked Questions

Are there different tax slabs for women?

Indian tax laws do not discriminate between men and women taxpayers. Therefore, a uniform tax system is applicable to both.

Can a housewife file an income tax return?

A housewife must file an income tax return if she earns income from any source like interest, dividend or tuition and such income exceeds the basic exemption limit ( Rs. 2,50,000 under the old tax regime & Rs. 3,00,000 under the new tax regime).

Is there any standard deduction for FY 2023-24?

Starting from the fiscal year 2023-2024, individuals earning a salary or pension income under the under the head "Income from Salaries" can benefit from a standard deduction of Rs. 50,000. This deduction is a fixed amount that can be claimed regardless of the expenses or investments made by the individuals. Importantly, this deduction is now applicable to both the old and new tax regimes.

What is the 80C limit for FY 2023-24?

Section 80C is widely known and utilised by taxpayers as it offers the opportunity to reduce taxable income by up to a maximum deduction of Rs. 1.5 lakh. This deduction can be achieved by making tax-saving investments such as paying life insurance premiums or incurring eligible expenses like school tuition fees. It's important to note that these deductions are available only for Individuals and Hindu Undivided Families (HUFs). However, it's worth mentioning that if a taxpayer chooses the new tax regime, they will not be allowed to claim this deduction under Section 80C.

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