Tax Planning for Women

Tax Planing for Women

Tax Planing for Women
Tax Planing for Women

This article was written on the suggestion of a friend who happens to be a working woman.

Since most of  tax-planning and investment decision in our country are taken by men, It is quite heartening to see the ladies take an interest in investments & tax planning.

It is of paramount importance for women to be financially independent and financially literate.

New Income Tax slabs have no special benefit for women and all taxpayers are treated equally.

                                                          Income Tax Slabs for Women (FY 16-17)

            Income Tax Slab                        Income Tax Rate
Total Income is not > 2,50,000                                    NIL
Total Income is > 2,50,000 but < 5,00,000 10% of the amount by which it exceeds 2,50,000
Where income > 5,00,000 but < 10,00,000 20% of the amount by which it exceeds 5,00,000
Where income > 10,00,000 30% of the amount by which it exceeds 10,00,000

Tax calculator :

We are putting together some important provisions for women under the Income Tax rules :

  • Utilize section 80 C fully . Women must invest in mutual funds under ELSS (Equity Linked Savings Scheme) category.

Since ELSS Mutual Funds have beaten other investment options comprehensively in the past, it makes sense for women to invest in the same and build long term wealth. Remember , the lock-in period is three years.

Recommended :

  • Women should also invest in PPF (Public Provident Fund). However, since the interest rate is fixed every year  and the rates are on a downward trend , it may not build long term wealth. So Our pick is ELSS mutual funds.


  • A tax rebate of Rs. 5000 from tax calculated will be available for people having an annual income upto Rs 5 Lakh . However, this benefit of Rs. 5000 tax credit will not be available if you cross the income range of Rs 5 Lakh.


  • Due to this provision, those who earn below Rs. 3 Lakhs are not required to pay any tax.

Investment option for women

  • Real Estate/Property because it  is very important to have a house of your own.
  • Term Insurance Plan to secure your family’s future especially if  you are the breadwinner of the family.
  • Take Health insurance plan for self/ family. What’s more , premium paid for health insurance will lower your taxable income further.
  • Mutual Funds, first exhaust ELSS MF quota (Max 1.5 Lakhs under 80 C), post that go for equity mutual funds.
  • Since long term capital gains are fullly tax exempt , whatever gains you make from equity mutual funds and shares are completely tax free.Therefore, this makes for a compelling reason to invest into mutual funds and shares for long term wealth creation.
  • You may invest into tax savings FD, Sukanya Smridhi Yojana (for girl child) etc. under section 80 C.


The rest of the investment options are same as those for men. You may refer below post for these options:

All Tax Savings Options – Summary


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