What are the Tax Exemptions and Other Monetary Benefits Available to Women?
Income tax slabs for men and women aren’t different. Women are taxed at the same rate the men are. The tax exemptions offered to men and women are not different. They are allowed for married and single women.
The finance minister introduced new tax rates in the Union Budget 2020. The proposed tax rates went lower for almost every income group. However, people who want to pay tax as per the new tax rates will have to forgo their exemptions. Taxpayers who don’t want to forgo their exemptions and deductions can pay tax as per the old regime. The finance minister has allowed citizens to pick between the old regime and the new regime. While taxpayers can pay tax at lower tax rates, they will have to forgo 70 of more than 100 exemptions and deductions. There are no different income tax exemptions for men and women. However, women can get more monetary benefits.
Monetary Benefits for Women–
- Property Tax Rebate
If a woman buys a property, then some municipal corporations offer property tax rebate. However, the property must be registered in a woman’s name.
- Stamp Duty Concession
There are some states that offer stamp duty concession to women. Delhi offers a stamp duty rate of 4% for women. However, the rate is 6% for men. The property must be registered in a woman’s name.
- Lower Interest Rate
Many banks offer lower interest rate to women on a home loan. If a property is registered in a woman’s name, then banks give loans at a lower rate.
- Credit Subsidy
Pradhan Mantri Awas Yojana (PMAY) scheme offers credit subsidy to women. The subsidy is allowed if a woman is the owner or co-owner of the house.
The exemptions and deductions are the same for men and women. However, a taxpayer must pay tax as per the old tax regime to get many exemptions. People who wish to pay tax as per the new regime can pay it at a lower income tax slab.
The Old Tax Regime and the New Tax Regime-
|Income||Old Tax Rate||New Tax Rate|
|Up to Rs. 2.5 Lakhs||Nil||Nil|
|Rs. 2.5 Lakhs to Rs. 5 Lakhs||5%||5%|
|Rs. 5 Lakhs to Rs. 7.5 Lakhs||20%||10%|
|Rs. 7.5 Lakhs to Rs. 10 Lakhs||20%||15%|
|Rs. 10 Lakhs to Rs. 12.5 Lakhs||30%||20%|
|Rs. 12.5 Lakhs to Rs. 15 Lakhs||30%||25%|
|Above Rs. 15 Lakhs||30%||30%|
Some Important Exemptions and Deductions–
- House Rent Allowance
A person earning a salary and living in a rented home can get House Rent Allowance. The rent amount can be exempted from taxes.
- Standard Deduction
Salaried people can also claim a standard deduction of Rs. 50,000.
- Periodicals and Books
A salaried person must pay for books, periodicals, newspapers, etc. Such expenses can be claimed while filing income tax.
- Leave Travel Allowance
People can also claim for leave travel allowance exemption as per the Income Tax law. The exemption can be filed for the expenses during the vacation. However, it is only for domestic travel.
- Section 80D
The premium paid for medical insurance can be claimed for deduction as per the Section 80D.
- Section 80C and Section 24
A homeowner can claim a deduction for the interest paid on a home loan. The taxpayer can file for deduction of up to Rs. 2 Lakhs.