In India, women’s financial independence and security are significantly supported through various tax benefits. With growing financial inclusion, women are increasingly taking charge of their economic futures—making independent decisions on investments, tax planning, property ownership, and entrepreneurship.

On International Women’s Day, let’s explore the tax incentives designed to empower women, helping them save, invest, own property, grow businesses, and plan for healthcare expenses.

Women as Business Leaders

Women entrepreneurs can benefit from the presumptive taxation scheme under Section 44AD, which simplifies tax compliance by allowing them to declare income as a percentage of turnover. The scheme offers a 6% tax rate for digital transactions and 8% for cash transactions, with an increased turnover limit of ₹3 crore for businesses primarily using digital payments.

According to experts, this provision helps ease tax burdens and streamline financial management, enabling women entrepreneurs to focus on business growth and innovation.

Healthcare and Insurance Benefits

Health insurance plays a crucial role in financial security. Under Section 80D, women can claim tax deductions on health insurance premiums—₹25,000 for self and family, and ₹50,000 if covering senior citizen parents. These deductions not only lower tax liabilities but also provide financial protection during medical emergencies, ensuring long-term security.

Savings for a Girl Child

The Sukanya Samriddhi Yojana (SSY) is a key scheme aimed at securing a girl’s future. Contributions to SSY qualify for deductions under Section 80C (up to ₹1.5 lakh), and the interest earned, along with withdrawals, is completely tax-free. This triple tax exemption makes SSY an effective financial tool for women planning for their daughters’ futures.

While the Public Provident Fund (PPF) does not offer additional tax benefits specifically for women, both PPF and SSY serve as excellent long-term savings options, fostering financial stability for families.

Home and Education Loans

Women borrowers can claim tax deductions similar to all taxpayers when taking home or education loans:

• Section 80C: Up to ₹1.5 lakh deduction on home loan principal repayment
• Section 24(B): Up to ₹2 lakh deduction on home loan interest payments
• Section 80E: Unlimited deduction on education loan interest payments

Though these benefits are not exclusive to women, they offer substantial financial relief, supporting smart financial planning and economic growth.

Retirement Planning Incentives

Women can enhance their retirement savings through schemes like the National Pension System (NPS) and Employee Provident Fund (EPF):

• NPS provides an additional ₹50,000 deduction under Section 80CCD (1B), in addition to the ₹1.5 lakh deduction under Section 80C.
• EPF contributions also qualify under Section 80C, ensuring a steady financial cushion post-retirement.

These retirement schemes help strengthen financial resilience, allowing women to achieve their long-term financial goals and secure a stable future.

On this International Women’s Day, it’s essential to recognize and leverage these tax benefits to enhance financial independence and security for women, empowering them to build a strong financial foundation for themselves and their families.