Tax Saving Options For Women: Many schemes are run for tax exemption in India, under which the eligible person can take advantage of it. Some tax benefits are also given to women in India. In such a situation, if a woman wants to take advantage of the schemes, then she should take advantage of it very carefully. Tax planning can help women manage their income, save money and achieve their financial goals.
Here is some information related to tax exemption for women, under which you can save tax. Let us know what are the tax saving options available for women.
What is the option to save tax
- Women can claim standard deduction up to Rs 50,000 on their income
- Under Section 80C of Income Tax, up to Rs 1.5 lakh can be saved in tax saving schemes like Public Provident Fund (PPF), National Savings Certificate (NSC) and Employees Provident Fund (EPF)
- Tax can be saved on premium paid for health insurance policies for self, spouse, children and parents under section 80D
- Donations made to charitable institutions are eligible for deduction under section 80G.
Where does one invest to save tax
Sukanya Samriddhi Yojana: If your daughter’s age is 10 seven or less, then you can opt for Sukanya Samriddhi Yojana and invest annually in the name of your daughter till she turns 21 years of age. This is a high return scheme and tax exemption is also given under section 80C.
Equity-Linked Savings Scheme: One can invest in ELSS mutual funds to enjoy tax benefits under section 80C.
Public Provided Fund: PPF is a tax saving scheme, in which up to Rs 1.5 lakh can be invested annually and tax exemption can be claimed under section 80C. This is a long term investment plan.
National Pension System (NPS): NPS offers an additional deduction of up to Rs 50,000 under section 80CCD(1B).
Tax exemption on home loan as well
If a home loan has been taken in the name of a woman, then tax exemption can be claimed on the home loan. Under Section 24 of Income Tax, deduction can be claimed on interest up to Rs 2 lakh every year. At the same time, under section 80EEA, first time home buyers can claim an additional deduction of up to Rs 1.5 lakh on home loan interest.
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