Income Tax Slabs for Women/Female Employees for FY 2024-25 (AY 2025-26)
In India, income tax can be classified as progressive in nature. It means that the rate of increase in income tax payable is directly proportional to the increase in an individual’s income, regardless of their gender.
Sounds complicated?
Well, it simply means that the tax liability of a person increases with an increase in their income. Apart from their income, it also depends on their age.
For the purposes of taxation, taxpayers have been classified into three broad groups –
- Individuals below 60 years of age
- Individuals between 60 and 80 years of age (senior citizens)
- Individuals above 80 years of age (super senior citizens)
Previously, the basic tax exemption limit was segregated for male and female taxpayers in India. Women enjoyed a higher basic exemption limit when it came to tax payment on their income earned.
However, since 2012-13, this difference in basic exemption limit has been away with, and common tax slabs have been introduced for both men and women, with respect to their income and age.
Following is a detailed explanation of income tax slabs for women – below 60 years of age, senior citizens and super senior citizens.
Income tax slabs refer to the applicable tax rates on the basis of one’s income and age. Now, while the categorization process remains the same, the slabs are subject to change during each Union Budget. For a budget where changes are not specifically mentioned, the tax rates remain the same as those of the previous financial year.
Income Tax Slabs for Women (below 60 years of age)
Here are the income tax slabs for individual women taxpayers under both old and new income tax regimes for financial year 2024-25.
Income Tax Slab for Women Under New Regime - FY 2024-25 (AY 2025-26)
The Union Budget 2024 revised the tax slab rates under the new tax regime, which will be applicable from FY 2024-25. These are as follows:
Income Tax Slab for Women Under Old Regime - FY 2024-25
The tax slab for women under the age of 60 for the Old Tax Regime for FY 2024-25 (AY 2025-26) is the same as previous financial years, which are as follows:
Note: An additional Health and Education cess @ 4% is applicable on the tax amount calculated.
Income Tax Slabs for Senior Citizen Women
Checkout the income tax slabs for women between the age of 60-80 under both old and new income tax regimes.
Income Tax Slabs for Senior Citizen Women Under New Regime - FY 2024-25 (AY 2025-26)
After Budget 2024 announced changes in the new tax regime slab rates, individual women taxpayers must use the following rates to compute their taxes:
Income Tax Slab for Senior Citizen Women Under Old Regime - FY 2024-25
Women over 60 years of age but less than 80 years are required to pay taxes based on the following income tax slabs, if they have opted for the old income tax regime. The female tax slabs remain the same for financial year 2024-25.
Senior citizens will also be levied an additional Health and Education cess @ 4%, applicable over the calculated tax amount.
Income Tax Slabs for Super Senior Citizen Women
For super senior citizen women, aged above 80, here are the income tax slab rates under the new and old income tax regimes.
Income Tax Slabs for Senior Citizen Women Under New Regime - FY 2024-25 (AY 2025-26)
To file ITR for women for FY 2024-25, super senior citizens women who’ve opted for new tax regime must follow the given rates, after Union Budget 2024 revised the new regime tax slab rates:
Income Tax Slab for Super Senior Citizen Women Under Old Regime - FY 2024-25
Women taxpayers over the age of 80 should consider the following tax rates under old regime for current financial year.
Note: An additonal 4% Health and Education Cess on the tax amount calculated will also be applied.
Additional Surcharge for FY 2024-25 (AY 2025-26)
Women with an annual income higher than ₹50 Lakh will also be levied with a surcharge. The surcharges for new tax regime are applicable from 1 April 2023:
Note that before the Finance Bill 2023, the highest surcharge of 37% was being levied on income exceeding ₹5 Crore. However, from April 1, 2023, this surcharge has been reduced to 25% under the new tax regime, as mentioned in the above table.
How is the Taxable Income Calculated?
The income tax department of India has fixed five heads of income under which your taxable income is calculated. These are:
- Income from salary.
- Income from house property.
- Income from business and profession.
- Income from capital gains.
- Any income from other sources which can include interest accumulated from fixed deposits, savings accounts, etc.
Now, if you are thinking that your tax liabilities are mounting up – don’t worry!
The Income Tax Act has put forth certain income tax exemption for women and all other taxpayers that can help you to save a chunk of your income. These exemptions have been put in place primarily to inculcate the habit of savings among Indians.
Let us take a look at the income tax rebate and exemptions you can avail, as mandated by the Income Tax Act, 1961.
Know more about:
Income Tax Rebate for Women for FY 2024-25
The Union Budget 2023 announced relief on income tax for women for the new tax regime by introducing rebate under Section 87A of the Income Tax Act, 1961, for individual taxpayers, including women. Following is the tax rebate for previous and current financial years, applicable for women in different age groups.
Income Tax Exemptions for Women Allowed Under New Tax Regime for FY 2024-25
Here are the income tax exemption for women in India that they can avail if they opt for the new tax regime:
Income Tax Exemptions for Women Not Allowed Under New Tax Regime for FY 2024-25
These income tax exemption for women are not available for taxpayers in India if they have opted for the new tax regime:
Income Tax Exemptions for Women Under Old Tax Regime for FY 2024-25
These are some allowances and deductions under the old tax regime for women for financial year 2024-25.
- A standard deduction of up to ₹50,000.
- Leave Travel Allowance (LTA) and House Rent Allowance (HRA).
- Reimbursement for expenses on telephone and mobile used at residence.
- Reimbursement of the expenses incurred on books, newspapers, periodicals, journals, etc.
- Expenses incurred on food coupons.
- Benefits on relocation allowance for shifting from one city to another for business purposes.
- Benefits on various facilities provided by the employer like health club facilities, cab facilities, gifts or vouchers.
Know more about: Health Insurance with Maternity Benefits
Under Section 80 of the Income Tax Act, women taxpayers can claim income tax benefits from the following exemptions:
Know more about:
Therefore, with such exemptions and benefits in place, women can reduce their tax liabilities to quite an extent by making suitable investments and expenses. Even though these investments are mostly long-term in nature, they can be extremely beneficial when it comes to saving taxes.
So, before planning your taxes, make sure you check the relevant IT slabs for women and all the applicable exemptions to ensure that you are well-informed about the entire system of taxation.
FAQs about Income Tax Slabs for Women
Are income tax liabilities different for women in India?
Previously, the basic exemption limit for taxation on women was higher than that of male taxpayers in the country. Since FY 2012-13, this segregation has been abolished with tax slabs being determined solely based on an individual’s income and age.
Are there any specific tax benefits for women?
No, there are no specific tax benefits provided based on gender. However, women can avail of general tax benefits available to all taxpayers, such as deductions under Section 80C, 80D, etc.
How much tax is deducted from salary in India for women?
In India, the income tax slab rate for women is the same as other taxpayers - ranging from 5% to 30%, depending on the income bracket. Since India has a progressive tax regime, it implies that the more women earn, the more tax they have to pay annually.
Is the tax filing due date the same for every taxpayer?
No, the due date for filing income tax varies. For individual taxpayers, the due date is set on 31st July of the assessment year.
Is there any standard deduction for women?
Individuals earning income under the under the head "Income from Salaries" can benefit from a standard deduction of ₹75,000 under the new regime, which was revised by the Union Budget 2024. Under the old tax regime, the standard reduction is ₹50,000.
Is a housewife exempted from paying taxes?
If the total income of a housewife exceeds the stated slab, whether from gifts or interest earned from savings account, they must file an ITR for women as per the selected regime.
Which is better for salaried women – the old tax regime or the new tax regime?
The choice may vary from person to person depending on their salary and savings. So, all female taxpayers must first compare and analyse their tax liabilities under both regimes using an Income Tax Calculator online and then choose as per their requirement.
Are there any age-based tax benefits for women?
Tax benefits are segregated based on age for all taxpayers and not just women. There are different income tax slab rates for individuals below 60 years of age, between 60 and 80 years, and above 80 years of age.
Can women avail tax benefits by investing in NPS?
Yes, as per the tax regime chosen by the taxpayer, taxpayers can claim three deductions under the Income-tax Act, 1961 under sections 80CCD (1), 80CCD (1B) and 80CCD (2) under the old tax regime. However, the new tax regime allows deduction only under Section 80CCD (2).
Can I claim medical expenses for my wife as a deduction under the Income Tax Act?
Yes, under Section 80D of the Income-Tax Act, you can claim a deduction of ₹50,000 towards medical expenditure incurred towards your wife who is a senior citizen, only if the person is not covered by health insurance.
Can I switch between the old and new tax regimes for AY 2024-25 or AY 2025-26?
Yes, if you are an individual female taxpayer with non-business income, you can switch between the new and old tax regimes every year before the ITR for women due date. However, if you are an individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person with business or professional income, you are not eligible to choose between the two regimes every year.