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On International Women’s Day, financial independence and security take centre stage. Women in India can leverage several tax-saving opportunities to build wealth and reduce liabilities.
Index Fund Corner
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| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
While there are no exclusive tax breaks for women, existing schemes provide significant benefits.
Tax benefits for women investing in Sukanya Samriddhi Yojana and PPF
Sukanya Samriddhi Yojana (SSY) is a tax-saving scheme designed to support the financial future of girl children.
Parents or guardians can open an account for girls under 10, with maturity at 21 years.
Contributions qualify for deductions under Section 80C up to ₹1.5 lakh, and both interest earned and withdrawals are tax-free.
“SSY offers the triple exemption benefit — investments, returns, and withdrawals are all tax-free — making it a powerful tool for securing a daughter’s future,” said Shefali Mundra, a tax expert at ClearTax.
While the Public Provident Fund (PPF) also qualifies for Section 80C deductions, women do not receive additional tax benefits beyond the general limit.
However, both SSY and PPF remain attractive long-term savings instruments.
Tax deductions on home loans and education loans
Women borrowers do not receive special tax exemptions on home or education loans, but they can claim deductions available to all taxpayers. Under Section 80C, a deduction of up to ₹1.5 lakh applies to principal repayment of home loans, while Section 24(B) allows a deduction of up to ₹2 lakh on interest payments.
For education loans, interest payments qualify for deductions under Section 80E, with no upper limit.
“While these provisions are not exclusive to women, they offer substantial relief and encourage financial planning,” Mundra noted.
How NPS and EPF support women’s retirement planning
The National Pension System (NPS) offers an additional deduction of ₹50,000 under Section 80CCD (1B), beyond the ₹1.5 lakh deduction under Section 80C.
Contributions to the Employee Provident Fund (EPF) also qualify under Section 80C.
“NPS and EPF provide a strong safety net, ensuring women maintain financial stability post-retirement,” said Mundra.
Tax benefits for women entrepreneurs
Women running small or medium-sized businesses can benefit from the presumptive taxation scheme under Section 44AD. This allows business owners to declare taxable income as 6% of turnover for digital transactions and 8% for cash transactions, simplifying tax filing.
The turnover limit extends to ₹3 crore if at least 95% of transactions are digital.
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“This scheme helps women entrepreneurs reduce tax burdens while easing financial management,” Mundra explained.
Health insurance and tax savings under Section 80D
Health insurance premiums qualify for deductions under Section 80D. Women can claim up to ₹25,000 for policies covering themselves and their family.
If insuring senior citizen parents, the deduction increases to ₹50,000.
“Health insurance deductions not only save tax but also ensure financial security during medical emergencies,” Mundra emphasised.
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