Tips for smart tax planning for women

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By Saakar S. Yadav

Tax planning is a crucial aspect of financial management for everyone. Women in India enjoy certain tax benefits and exemptions, making it important to leverage these advantages through careful tax planning. Effective tax planning can help women optimize their income, save money, and achieve their financial goals.

Here are some insights on tax planning for women:

Utilize Tax Exemptions and Deductions

  • Standard Deduction: Women can claim a standard deduction of up to INR 50,000 on their income.
  • Section 80C: Invest up to INR 1.5 lakh in tax-saving instruments like Public Provident Fund (PPF), National Savings Certificate (NSC), and Employee Provident Fund (EPF).
  • Section 80D: Deduct premiums paid towards health insurance policies for self, spouse, children, and parents.
  • Section 80G: Avail deductions on donations made to charitable institutions.

Opt for Tax-Saving Investments

To maximize tax savings and grow wealth, consider the following investment options:

  • Sukanya Samriddhi Yojana (SSY): If your daughter is aged 10 years or below, you can opt for Sukanya Samriddhi Yojana and make yearly investments in your daughter’s name until she attains 21 years of age. This is an excellent way to save up for the future of your children as it offers a high interest rate and it also provides tax benefits under Section 80C.
  • Equity-Linked Savings Scheme (ELSS): Invest in ELSS mutual funds to enjoy tax benefits under Section 80C.
  • Public Provident Fund (PPF): PPF offers tax-free interest and long-term wealth creation.
  • National Pension System (NPS): NPS provides an additional deduction of up to INR 50,000 under Section 80CCD(1B).

Plan for Home Loans

Women who avail home loans can enjoy additional tax benefits:

  • Section 24: Claim deductions on home loan interest of up to INR 2 lakh per year.
  • Section 80EEA: First-time homebuyers can claim an additional deduction of up to INR 1.5 lakh on home loan interest.

Consider Investment in Tax-Free Bonds

Tax-free bonds are a viable investment option as the interest earned is exempt from income tax. These bonds are issued by government-backed organizations and provide regular income with low risk.

Evaluate Retirement Planning Options

Women should prioritize retirement planning to ensure financial security in the long run. Options such as the National Pension System (NPS) and Employee Provident Fund (EPF) offer attractive tax benefits while building a retirement corpus.

Smart tax planning is crucial for women in India to optimize their income, save money, and achieve financial goals. By leveraging tax exemptions, and deductions, and exploring various investment options across tax sections, women can effectively plan their taxes while creating wealth. Remember to stay updated with the latest tax laws and consult professionals for personalized advice. With a well-thought-out tax planning strategy, women can pave the way towards a financially secure future.

The author is founder and director of

Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.


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