Confused about taxes? Here's how salaried women can reduce their tax burden
financial literacy. Balancing career aspirations with personal goals often require strategic tactics to optimise income and manage liabilities. Given the landscape, excelling in financial management becomes even more critical for women now, since tax slabs are also gender neutral.
In the era of progressive digitization, numerous opportunities have come up for women to optimise their financial strategies and minimise their tax burden. In case of tax-saving strategies, it requires more than just skimming the surface of well-known deductions. While many are familiar with the standard playbook—claiming the standard salary deduction of upto Rs.
50,000 u/s 16(ia) of the Income Tax Act, 1961, leveraging employer-sponsored schemes like HRA and LTA, health insurance premium deductions upto Rs. 25,000 under section 80 D; PPF benefits under section 80 C and the perks for home loan interest payments, privileging women with an additional deduction of Rs. 1.5 lakh under Section 80EEA, deduction under Section 80CCD (2) of the Income-tax Act for investment made in the National Pension System (NPS); there exists a hosts of overlooked avenues that can yield substantial tax savings and this article aims to explore these untapped resources.
Insurance plays a vital role in financial security and offers significant tax advantages. Life endowment policies combine protection and savings, making them a popular choice for risk-averse women seeking tax benefits. Compared to term insurance- focused solely on providing financial protection in case of death, they offer guaranteed maturity payouts, providing both financial security and a lump sum for future goals.
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