Know The Tax Saving Options Available Only To Women

It is absolutely important to know the tax-saving options available only to women, especially in India, where women don't have sufficient knowledge about finances. Shockingly, a major chunk of women are not even in possession of bank accounts. Not to deny that the condition of women in the financial aspect is better than what it used to be, however, more and more women need to take a step ahead and participate in financial planning.

This article is dedicated to empowering women by discussing how to properly plan their taxes and making them aware of the tax-saving options available only to women!

Tax Saving Options Available Only To Women

1. Sukanya Samridhi Yojana

As the government takes initiatives to financially empower women, it has launched the Sukanya Samridhi Yojana in that direction. This scheme brings excellent tax benefits for women and helps them gain financial rewards. The interest rates are in favor of women through the Sukanya Samridhi Yojana. An interest rate of 8.2% is currently applicable to women under this scheme. This scheme is particularly beneficial for girl children, as it ensures financial security for the girl child. Through the Sukanya Samridhi Yojana, a maximum of two girl children are subjected to the benefits.

The following conditions need to be fulfilled by the family to avail themselves of the benefits of the Sukanya Samridhi Yojana:

• 1. Accounts must be opened in commercial banks or post offices.
• 2. The opening of the account must be done before the girl child reaches the age of 10 years.
• 3. The minimum value of the deposit to be made in a financial year must be ₹250.

Some other points to be noted regarding the Sukanya Samridhi Yojana:

• 1. The maximum amount that can be invested in Sukanya Samridhi Yojana is ₹1.5 Lakh
• 2. Under Section 80C of the Income Tax Act, the deposited amount can be claimed as a deduction up to ₹1.5 lakh.
• 3. Interest income in this scheme is tax-free.

2. Income Tax Slab Rates

To empower women and help them make clever financial decisions and tax-saving initiatives, the Income Tax Slab Rates had been lower than the Income Tax Slab Rates for men. The low slab rates helped many women save taxes and take a step towards financial independence.

However, the Income Tax slab Rates were lower for women until the financial year 2011-2012. Gender-neutral Income Tax Slab Rates were introduced in the financial year 2012-2013, rendering the Income Tax Slab Rate for both men and women equal. Not to forget that until the financial year 2011, when Income Tax Slab Rates were lower for women, it was one of the best tax-saving options available only to women.

3. Mahila Samman Savings Certificate Scheme

Mahila Samman Savings Certificate Scheme is one of the best tax savings options available only to women. As the name of the scheme includes the word “Mahila”, it becomes evident enough that this is a tax-saving option available only to women. Mahila Samman Savings Certificate Scheme is an excellent initiative by the government of India. The government of India has given this scheme to make women generate surpluses and savings and become financially stable and independent. Mahila Samman Savings Certificate Scheme comes with great tax benefits, particularly for women.

4. Stamp Duty Concessions

Stamp Duty Concessions is one of the few tax-saving options available only to women. The stamp duty confessions allow women to minimize tax liabilities and, therefore act as one of the best ways towards financial stability. The stamp duty concessions deal with decreased stamp duty rates, joint ownership advantages to women, and stamp duty exemptions on particular transactions, for instance, property inheritance, and government housing schemes among others. In India, stamp duty concessions are offered exclusively to women by some of the states.

Some other ways for women to save taxes

1. Repayment of Home Loan

Salaried women who have availed of a loan to buy their dream house can use this opportunity as an advantage to save taxes. Tax-saving benefits can be availed while repayment of this home loan. Tax benefits are provided on the principal amount of a home loan as provided by Section 80C of the Income Tax Act. Up to ₹1.5 lakh deduction on tax on repayments are offered in a financial year.

2. House Rent Allowance or HRA

HRA or House Rent Allowance is the allowance offered to an employee who lives in a rented space. Women employees living in a rented space can claim amounts as a deduction from income.

3. Education Loan

Tax deductions can be claimed on interest in the repayment of education loans. This is mandated by Section 80C of the Income Tax Act. In this case, there isn't a cap on the deduction permissible. So, if you are a woman who is thinking of getting an education loan for yourself, or your children, make sure to take advantage of the provision.

4. Health Insurance

Salaried women who invest in health insurance are taking a step towards tax-saving options. As mandated by Section 80D of the Income Tax Act, payments in the form of investment in health insurance are applicable for tax deductions.

5. Donations to relief funds

Suppose you are a working woman finding options to save taxes. In that case, a donation to certain relief funds and charities might be one of the ways as such donations to some specified relief funds and charities are deductible from your total income. There can be a maximum legit deduction of 50% or 100% of the donated amount. So, salaried women taking a step towards financial advancement can utilize this opportunity in planning taxes.

The need for women to be independent and gain financial empowerment is extremely important in today's date. And PensionBox stands by this. The article above aims to provide clear and comprehensible information about the tax-saving options available only to women.