Women and Wealth

As a salaried woman, you have several tax-saving options at your disposal. From claiming deductions to investing in tax-saving schemes, you can significantly reduce your tax burden while securing your financial future. Let's explore the top ways for salaried women to save on taxes.

1. Save While Repaying a Home Loan

Owning a home is a dream for many, and availing of a home loan can make it possible. It also provides tax-saving benefits:

• Section 80C: Claim up to ₹1.5 lakh on principal repayment as a deduction from your total income.
• Interest Deduction: Under Section 24(b), you can claim a deduction of up to ₹2 lakh on the interest paid for a self-occupied property.

2. Use House Rent Allowance (HRA)

If you stay in a rented house and HRA is part of your salary, you can claim the least of the following amounts as a deduction:

• The actual HRA received.
• 50% of the basic salary + dearness allowance (DA) if the employee resides in a metro city, or 40% if in a non-metro city.
• Rent paid minus 10% of the basic salary + DA.

3. Invest in Sukanya Samriddhi Yojana (SSY)

For working mothers with girls, SSY brings the dual advantage of securing the future of your child and tax saving.

• EEE Scheme: Investments, interest earned, and maturity withdrawals are tax-free.
• Section 80C Deduction: Claim up to ₹1.5 lakh annually.

4. Save Taxes on Education Loan Interest

If you have an education loan for yourself, your spouse, or your children, you can claim a deduction under Section 80E:

• Deduct the entire interest paid during the financial year.
  There is no limit on the deduction amount.

5. Deduction on Savings Account Interest

Savings bank account interest is taxable, but you can reduce this tax burden:

• Section 80TTA: You can claim a deduction of up to ₹10,000 per year on savings account interest.

6. Donate to Relief Funds and Charities

Donations to approved charitable organizations not only contribute to society but also reduce your taxes:

• Section 80G: Deduction of 50% or 100% of the donation amount as specified.
• Cash donations above ₹2,000 are not eligible for tax benefits.

Bottom Line

The Income Tax Act, 1961 provides numerous tax-saving opportunities for salaried women. With home loans, HRA, SSY, and charitable donations, you can adopt smart saving and investment strategies to secure your financial future.

Need more assistance? Calculate your tax liabilities and track expenses with the JJ Tax app or check our website for expert guidance.

📲 Download the JJ Tax app on the Play Store or App Store today!

Start saving smartly today!