When the fiscal year is almost over, most of us tend to file our income taxes quickly, which results in hurried and unsatisfactory decisions. We can, however, increase the likelihood of a less stressful, more uneventful year-end by arranging our taxes in the first quarter of the fiscal year. Tax planning is important for working women as much as men. This straightforward but careful technique guarantees a well-organized and long-term beneficial financial path.
If a housewife receives income beyond the basic exemption limit from any source—including interest, dividends, or tuition—she must file an income tax return. The exemption ceiling was Rs. 2,50,000 under the previous tax regime and is now Rs. 3,00,000 under the current tax regime.
It is important to understand that women are subject to the same tax slabs as men before delving into any particular schemes. Being aware of your situation might help you prepare more effectively and maximize your savings.
Income Slab (Rs) | Old Tax Regime | New tax Regime (until 31st March 2023) | New Tax Regime (From 1st April 2023) |
---|---|---|---|
0 – 2,50,000 | – | – | – |
2,50,000 – 3,00,000 | 5% | 5% | – |
3,00,000 – 5,00,000 | 5% | 5% | 5% |
25,00,000 – 6,00,000 | 20% | 10% | 5% |
6,00,000 – 7,50,000 | 20% | 10% | 10% |
7,50,000 – ₹9,00,000 | 20% | 15% | 10% |
9,00,000 – 10,00,000 | 20% | 15% | 15% |
10,00,000 – 12,00,000 | 30% | 20% | 15% |
12,00,000 – 12,50,000 | 30% | 20% | 20% |
12,50,000 – ₹15,00,000 | 30% | 25% | 20% |
>15,00,000 | 30% | 30% | 30% |
It is a government-backed savings program aimed at encouraging parents to set aside money for their daughter’s college education and future marriage. The SSY is classified as an EEE (exempt, exempt, exempt) tax. This implies that there will be no tax on your earnings, withdrawals, or investments. This is a really rewarding strategy, especially if you have a daughter.
The Income Tax Act, 1961 offers tax exemption under Section 10 (11A), and investments made in the SSY plan are eligible for a deduction under Section 80C, up to a maximum of ₹1.5 lakh.
Post offices provide this fixed income investment plan. With a minimum deposit of ₹1000, you can participate in the scheme, which now guarantees a 7.7% return. You may deduct any sum paid or deposited toward a National Savings Certificate under Section 80C of the IT Act, up to a maximum of ₹1.5 lakh.
For individuals who want to make long-term investments, PPF is great. A minimum deposit of ₹500 is required to create a PPF account, and the maximum yearly contribution is ₹1.5 lakh. A safe method to accumulate a sizeable corpus over time, the PPF offers tax advantages and competitive interest rates.
Tax incentives are also available to women who purchase life insurance plans for themselves, their spouses, or their children. However, under Section 80U of the Income Tax Act, the deductions cannot exceed 10% of the amount insured for a normal person and 15% of the sum insured for a person with certain specified diseases. Because of this, insurance serves as both a prudent tax-saving strategy and a protective precaution.
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