Income Tax Exemptions for females in India: That which you Have To Know

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Women in India have climbed up the earnings ladder drastically in the past ten years. However each and every year when it’s Budget time, we all wish there are advantages for us tax wise.

The spending budget doesn’t actually offer you too many exclusive benefits to women, but generally there are a couple of places where everyone is able to save money on tax. Here’s a glimpse at what is advantageous from a tax perspective, hence ladies are able to create their choices wisely.

For resident women up to the age of 65 years, there’s zero income tax on net revenue up to Rs.1,90,000. This’s a little higher compared to the bar for men, which in turn is Rs.1,80,000. With income tax loans from April 1st 2011, salaried women have a 10 % tax deduction if their employer has invested much more than Rs.1,00,000 in the Central Government’s Pension Scheme.


You will find a lot of different investment options which aid in saving tax, and one should always go through and research these totally before investing. Earlier males entirely made financial decisions and did all the investing.

These days girls are to not remain behind, in addition to plenty of them do considerable research on investment options before deciding on what’s most beneficial for them.

The most well-known Section 80C on the Income Tax Act, offers numerous tax advantages to investors. One can easily purchase instruments for example Public Provident Fund (PPF), National Savings Certificate (NSC), Tax Saving Fixed Deposits (FD) therefore on, up to a maximum of Rs.1,00,000.

Beyond this, one can also pay for Infrastructure Bonds up to Rs. 20,000. There are a few market linked products such as Equity Linked Saving Scheme (Unit and elss) Linked Insurance Plan (ULIP) which can also be thought about.

The danger you can shoot together with your money varies inversely as your age. If you’re in your early working years, you can allocate a higher proportion to ELSS investments instead of the fixed income investments such as NSC and also PPF.

If you’re living in a rented accommodation, then see to it that you get HRA (House Rent Allowance) tax benefits. You will find 3 elements which are considered for HRA – the real rent allowance offered by employer, fifty % of basic pay in metros (forty % in non metros) and actual rent paid minus 10 % of basic pay. The least of these three factors is what you say as HRA for tax exemption.

There are tax exemptions produced on home loans under Section 80C, as well as on interest under Section twenty four. These ought to in addition be availed of wherever applicable. Investing together features severala few advantages for a couple, such as eligibility for loans.

While executing taking investment and tax preparation decisions girls should consider three factors – age, income as well as what economic goals they’ve set independently and also from the family perspective.

A right balance of low risk investments including fixed deposits, and moderate and high risk investments such as shares, real estate and gold needs to be struck.

Look at consulting a certified and trusted economic planner as they have the knowledge and experience to manage money and place you on the appropriate track.

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