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

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.

Budget 2025 Updates

The new Income Tax Bill has been tabled by the Honorable Finance Minister in the Lok Sabha. It aims to simplification and better presentation of the provisions.

As per the budget 2025, the income up to Rs. 12,00,000 will have zero tax liability for the FY 2025-26 (AY 2026-27) under the new tax regime. Here's how:

The revised tax slabs under the new regime for FY 2025-26 (AY 2026-27) are as follows:

Annual Income Tax Slabs	income Tax Rates
Upto Rs. 4,00,000	NIL
Rs. 4,00,001 - Rs. 8,00,000	5%
Rs. 8,00,001 - Rs. 12,00,000	10%
Rs. 12,00,001 - Rs. 16,00,000	15%
Rs. 16,00,001 - Rs. 20,00,000	20%
Rs. 20,00,001 - Rs. 24,00,000	25%
Above Rs. 24,00,000	30%

With the revised tax structure, individuals earning up to Rs. 12,00,000 will have no tax liability due to the increased rebate of Rs. 60,000. For salaried individuals, the tax liability will be zero for incomes up to Rs. 12,75,000, due to the Rs. 75,000 standard deduction.

Note:

• The marginal relief on rebate is still applicable. 
• The rebate is not available for income that is taxed at special rates (e.g., capital gains under section 112A).

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

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

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:

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.

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.

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.