The rising numbers of accomplished women have of course played a huge impact on the income tax laws and regulations of the country. In developed nations like the United States, women tax payers account for almost 50% of the total national tax revenues.

Although in India, the total count is not close to 50%, it is significantly and steadily rising.

This of course is wholly due to the quick rise in pay scales of professional women, and women entrepreneurs across the country. Women in India have carved a niche for themselves in every area. From defence services to engineering and baking, the list is endless, as are the number of working women in India today.

Impact of Tax Laws on Working Women

When we speak of India, we have to consider the fact that Indian woman are still in a nascent stage on the whole in terms of being major tax payers. This is why the Indian government tries to promote women entrepreneurship and the spirit of the working woman by keeping lower limits.

Furthermore, India as a country is still opening up to the fact that a woman can be equal to their male counterparts, and can perform any task just as well. As a nation, we are in the middle of a huge change. Although it is common to find working women in larger cities, especially metros, the actual change needs to come from the inner towns and villages of India.

When it comes to taxes; India treats its women as one.

Basic Tax Rules

As a starting point, it is helpful to remember the following basic features about taxes that affect women in India:

  • There is a different tax slab for men and women in India, the limits of which may change every fiscal year on the basis of the new budget.
  • Every working woman in India is liable to pay her taxes irrespective of what business she does and where she lives
  • Income Taxes are imposed on individuals and companies. So if a woman runs a company, she may incur an individual tax to pay, as well as income tax for the company.
  • Income Tax payable is calculated on every income gained by a woman. The heads of income are usually divided as income from salary, income on property, income from profession or business, income from capital gain (investment in shares, funds etc), income from other sources.
  • There is a common law for both men and women in which investments of certain kinds up to Rs 100,000/- is considered tax free. This list will be discussed in detail in next part. 


Introduction to Taxes for Working Women in India: Part 2, Choosing the Right Accountant