Published on Mar 10, 2023Updated on Oct 12, 2023
Tax exemption for women can greatly impact their financial stability and future. Whether you're a seasoned tax professional or just starting to delve into the world of tax savings, this guide will provide you with 7 easy and practical ways for a salaried woman to save according to the tax slab for women. From maximising your retirement contributions to taking advantage of education credits, these strategies can help you make the most of your income as per the income tax slab for women and secure your financial future.
If you have a home loan, you may be able to claim a tax deduction for the interest component of the loan under Section 24(B). You can claim deductions of up to INR 20,00,000 for self-occupied properties under the heading “Income from House Property”. To be eligible for this, the property must be acquired or built within five years of the end of the fiscal year in which the loan was obtained. Otherwise, the deduction will be restricted to INR 30,000.
Apart from a personal loan for salaried applicants, you can even take a loan if you wish to take a break from your job for education. If you took a loan for further education, you can claim a tax deduction for the interest paid on the loan under Section 80E. As a result, if you apply for an education loan for higher education for yourself, your spouse, your children, or any student for whom you are the legal guardian, you may be able to claim a deduction under this section of the Income Tax Act.
The Sukanya Samriddhi Yojana is a government savings scheme intended to assist girls as part of the "Beti Bachao - Beti Padhao" initiative. Under this plan, the parent or guardian of a girl child aged 10 or younger can open an account. This programme has a higher interest rate as well as various tax benefits.
With the rising expense of healthcare, having a solid Health Insurance, plan is now a must. With the correct health insurance, you can not only reduce your healthcare costs but also save money on taxes. The Section 80D of the Income Tax Act permits you to fall into a tax slab for women such that there is a deduction of up to INR 25,000 per year for paying your Health Insurance premiums, with a further INR 5,000 deduction for insurance acquired by or for senior citizens.
Interest earned on savings accounts, post office savings, or co-operative societies is tax-free up to INR 10,000. You can easily include the interest from this account in your other income and claim a deduction for the whole interest earned or INR 10,000, whichever is less. This is true for both individuals and HUFs.
In certain cases, donations made to specific organisations listed under Section 80G are eligible for a 100% tax exemption. To claim the tax exemption for women, you will need to provide proof of payment in the form of a receipt from the organisation and declare the donation amount in your tax return. It is important to note that the tax laws are subject to change, and it is always recommended to check the latest guidelines from the Income Tax Department or consult a tax professional for more information.
House Rent Allowance (HRA) is a component of a salary that is paid by an employer to an employee to cover the cost of renting a residence. As a salaried woman who lives in a rented house, you may be eligible to claim a tax exemption on the HRA component of your salary. It's important to note that to claim the HRA exemption, you will need to provide proof of rent payment in the form of a rent agreement and rent receipts.
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In conclusion, as a salaried woman, there are many ways to save on taxes and secure a financially stable future for yourself and your family. One of these ways is to take advantage of personal loans, such as those offered by SMFG India Credit, which provides loans of up to INR 25 lakhs* at affordable interest rates and flexible repayment terms. With a hassle-free application process and minimal documentation, women can enjoy the benefits of a personal loan while focusing on their financial stability. Start by checking your eligibility through SMFG India Credit's online EMI calculator, and take the first step towards a financially secure future.
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*Terms and Conditions apply. Loans are disbursed at the discretion of SMFG India Credit.