Tax saving schemes: India offers various schemes for tax exemption, including special benefits for women. It is crucial for women to carefully consider and take advantage of these schemes. Effective tax planning can help them manage their income, save money, and achieve their financial goals. Here is some information on tax exemption options available for women and how they can save tax.
Tax Saving Options:
Women can claim a standard deduction of up to Rs 50,000 on their income.
Under Section 80C of the Income Tax Act, women can save up to Rs 1.5 lakh in tax-saving schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), and Employees Provident Fund (EPF).
Tax savings can be availed on premiums paid for health insurance policies for self, spouse, children, and parents under Section 80D.
Donations made to charitable institutions are eligible for deductions under Section 80G.
Investment Options to Save Tax:
Sukanya Samriddhi Yojana: If your daughter is 10 years old or younger, you can invest in this scheme in her name until she turns 21. It offers high returns and tax exemption under Section 80C.
Equity-Linked Savings Scheme (ELSS): Investing in ELSS mutual funds provides tax benefits under Section 80C.
Public Provident Fund (PPF): PPF is a long-term investment scheme that allows annual investments of up to Rs 1.5 lakh with tax exemption under Section 80C.
National Pension System (NPS): NPS offers an additional deduction of up to Rs 50,000 under Section 80CCD(1B).
Tax Exemption on Home Loans:
If a home loan is taken in a woman's name, tax exemption can be claimed. Under Section 24, deductions can be claimed on interest payments up to Rs 2 lakh annually. Additionally, under Section 80EEA, first-time homebuyers can claim an extra deduction of up to Rs 1.5 lakh on home loan interest.
Note: Remember to consult with a tax professional or financial advisor for personalized advice and to ensure compliance with tax regulations.
Read more: ITR: 10 common mistakes to avoid when filing your income tax return
