As more women are now taking part in India’s workforce, their contribution to the country’s growth by paying income tax has also increased. As a woman in the workforce, it is crucial to know how much tax you will have to pay and how to reduce your liability. Learn more about the income tax slab and overall tax for women in India, including deductions available under the Income Tax Act.
As an Indian taxpayer, you're required to pay taxes if your income crosses a certain threshold. These rules are set out in the Income Tax Act of 1961 and it’s essential to follow them to ensure you’re paying the correct amount on time.
As a woman taxpayer, you may be wondering if there are any special tax concessions or benefits available to you.
Income tax in India is a direct tax levied on income earned by individuals, companies and other entities, under the Income Tax Act of 1961. The tax system follows different income slabs, with separate provisions for individuals and senior citizens.
Tax is calculated based on total income from sources like salary, business profits, investments and property. Various deductions and exemptions, such as for investments and insurance premiums, can help reduce taxable income.
The Indian Government divides income into different slabs, with varying tax rates for each. These slabs are updated annually through the budget and are designed to ensure that those with higher incomes contribute more to the economy.
Income tax slabs work by categorising income into different ranges, with each range taxed at a specific rate. The more you earn, the higher the rate of tax applied to your income. For example, if your income falls within a lower tax slab, you'll pay a lower percentage and if you fall into a higher slab, you'll pay a higher percentage on that portion of your income.
The Indian government previously offered certain tax benefits for women, such as higher exemption limits. However, in FY 2012-13, this distinction was abolished and a common tax slab was introduced for both men and women. As a result, there are no specific tax benefits or deductions for women under the Income Tax Act anymore.
Refer to the tables below to understand the income tax slabs for women in India under the new regime for FY 2025-26 (AY 2026-27):
| Annual Income Tax Slabs | Income Tax Rates |
|---|---|
| Up to ₹4,00,000 | NIL |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹20,00,000 | 20% |
| ₹20,00,001 - ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Women can save on taxes by claiming certain benefits and tax rebate for women available under the old tax regime. Refer to the table below to get information about the tax exemptions and tax deductions for women in India:
| 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 Samriddhi Scheme, Senior Citizen Saving Scheme | ₹1.5 lakh |
| 80CCC | Contribution to a specified pension fund | ₹1.5 lakh |
| 80CCD(1) | Contribution towards the National Pension Scheme (NPS) | ₹1.5 lakh |
| 80CCD(1B) | Additional deduction for NPS contribution | ₹50,000 |
| 80D | Health insurance premium, Preventive health scheme | ₹25,000 (self, spouse and children), ₹50,000 (senior citizens self/parents), ₹5,000 (Preventive health checkup) |
| 80DD | Medical treatment for differently-abled dependents (spouse, children, parents, brother and sister) | ₹75,000 in case of 40% disability, ₹1,25,000 in case of severe disability |
| 80DDB | Medical treatment of specified ailment or disease | ₹40,000 for self and dependents, ₹1,00,000 for senior citizens |
| 80E | Interest payment of a loan taken for higher education | Interest amount paid |
| 80EEA | Interest paid on a loan for a house | ₹1.5 lakh |
| 80EEB | Interest paid on a loan for a electrical vehicle | ₹1.5 lakh |
| 80G | Donations to eligible charitable and religious institutions, etc. | 50% or 100% of the donation |
| 80GG | House rent paid | Whichever is less: ₹5,000 per month, Rent amount minus 10% of total income, 25% of the total income |
| 80GGC | Donations made to electoral trusts or political party | Amount of donation |
| 80TTA | Saving bank interest | ₹10,000 |
| 80TTB | Interest on bank deposits received by senior citizens | ₹50,000 |
Check Also: Is Your Income Tax Notice Fake? How to Check Authenticity
Smart financial planning for women involves optimising tax-saving strategies to reduce liability, maximise savings, and secure long-term financial health.
Examples:
1. Say a woman from the lower-income group earns up to ₹7 lakh. She can avail of a tax rebate of up to ₹25,000 under the new tax regime. However, under the old regime, if her income is up to ₹5 lakh, she can only avail of a tax rebate of up to ₹12,500.1
2. A working woman invests ₹1 lakh in a PPF account, ₹30,000 in her EPF (Employee Provident Fund) and contributes ₹20,000 annually towards a health insurance policy for herself and her family. By doing so, she can claim a total of ₹1.5 lakh under Section 80C and ₹25,000 under Section 80D.
With this information on hand, you can go ahead and plan your taxes in a more informed manner. Don’t be hesitant to seek professional advice for personalised tax strategies and investment planning. You can also use tax apps to simplify tracking your income, figuring out deductions, and filing returns.
The income tax slabs for women in India are the same as those for men. Women can also avail of exemptions and deductions, which can help reduce taxable income.
In India, there are no specific tax slabs or exclusive deductions based on gender. Women can avail the same tax benefits and deductions available to all taxpayers.
No, in India, tax credits do not differ between men and women.
Here are ways women can reduce tax liability through smart financial planning and using the available deductions and exemptions:
NPS: Get an additional ₹50,000 deduction under Section 80CCD(1B)
