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What is the Tax Slab for Women in India?

by | Jan 18, 2023

We all know about income tax. We are required to pay more income tax the more we earn. But it’s not in terms of age, the more your age the low your tax will be.

There is no one who can be resisted from this including women. The government, to increase women’s participation in the workforce in India and empower them, also takes up certain initiatives from time to time.

Women have been working in various fields and they get a salary for it from where they had to pay taxes. Let us discuss how the government has planned a tax slab for women. 

The first point to be noted is that from 2013 onwards there is no special tax slab for women. They are included in a common slab which consists of every gender. So from this, we can take note that India is developing gradually and giving opportunities to women to explore and providing them more job opportunities than before when women had fewer opportunities for exploration. 

By giving this kind of opportunity, the government also has a profit where more income tax is being paid and which helps the country to stabilise its economy. Indirectly, we can say that women are one of the helping hands for the development of the country.

How is the Taxable Income Calculated?

The five heads of income by which the taxable income is calculated are fixed by the Income Tax Department of India.  These are:

  1. Income from salary.
  2. Income from house property.
  3. Income from business and profession.
  4. Income from capital gains.
  5. Any source of income that includes interest from savings accounts, fixed deposits or etc.

A detailed look at income slabs for women

Everyone is divided into three age groups for taxation purposes: those under 60, those between 60 and 80, and those over 80. These groups are known as senior citizens and super senior citizens, respectively. So the Tax department of India has come up with a number of tax slabs to understand quickly how much tax a person needs to pay.

Income Tax for Women under 60 Years Old

The calculation is simple. If your yearly income is less than two lakhs fifty thousand, you don’t need to pay tax. That’s a good step by the government to ensure the people of the typical lower or middle class never run out of money. They can also lead a good life without any tax pressure.

For women whose yearly income is between two lakh fifty thousand and five lakhs, they have to pay only 5% of their yearly income which is not too much looking at the income. They can pay it easily without any pressure.

For women whose yearly income is between five lakhs and ten lakhs, they have to pay 20% of their income as tax with an additional amount of INR 12,500. People may find it somewhat double standard as they have to pay one-fifth of their salary to the government but it is done for their development only.

For women whose yearly income is more than ten lakhs, they have to pay a huge amount of tax to the government. It consists of 30% of their salary with an additional amount of INR 1,12,500 to the government. Again people with this big amount of salary feel uncomfortable paying that much amount to the government. 

Tax Slab for Senior women citizens between 60 to 80 Age

Well at this particular age, people usually bring up their next generation with most of the people get retired. So an additional tax may be cruel sometimes.

Taking those factors into consideration, the government has planned taxes for them where they do not need to pay tax if their annual income is less than three lakhs. If their annual income is between three lakhs and five lakhs, they have to pay 5% of their income.

If their annual income is between five lakhs and ten lakhs, they have to pay 20% of their salary as tax. If their salary is more than ten lakhs, they have to pay 30% of their salary. Well saving money at this particular age is so difficult with medical care, so sometimes people give up paying taxes.

For Super Senior Citizen Above 80 Age

As they are citizens which is seniormost so they get little relief from tax a bit more than women under 60 age and between 60 to 80. 

These senior citizens, don’t need to pay taxes for their annual income of fewer than five lakhs which consists of a large population of them. This tax-free step is very beneficial for them as they have to spend money on their medical care.

For women whose yearly income is between five lakhs and ten lakhs, they have to pay 20% of their salary as tax.  This is definitely a reasonable amount for those women with this much income.

For women whose yearly income is more than ten lakhs, they have to pay 30% of their income with an additional 1,00,000(INR). They can pay it easily If they want to.

Now it looks unfair that this much tax is imposed on citizens whose age is more than 60 but we also have to keep in mind they are working and earning money for more than 30 years. So in these 30 years, they had already earned so much that this tax value after 60 will be very less in comparison with the amount they had earned in the last 30 years. So the government also don’t mind it too much.

Now looking at the current situation of the country where the price of everything is rising, women may feel like saving some money so that their family doesn’t face any financial crises. This thinking is good as we can say a person is saving money to bring the family but doing it so sometimes people neglect to pay taxes. 

They want to run away from paying taxes which is a wrong step. It is a mistake which many people were never aware of. They ran away from not paying taxes and found it a courageous thing to do so.

If the person gets caught, the person may be in severe problems with fines, suspension, jail or even can be expelled from their occupation. 

Another thing which will happen that we are not familiar with is if the government can’t generate enough for the daily survival of the country, the country’s economy falls down. To keep the economy stable, the government then charges more taxes on the things which people use in day-to-day life for survival.  

Then there is an increase in the price of things and then again we all suffer from it. Looking at this problem, we can say we need to pay taxes. 

We need to understand that what the government is doing is for the development of India. The government is providing opportunities for women for their and the countries’ development only. So paying an amount of your income should not bother the respective women. Moreover, taxes should be paid so that we can turn into a good example. We can set a better example for the next generation by giving taxes regularly and honestly.

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