Women’s Day 2025: What are the Tax and Financial Benefits for Women in India?

On Women’s Day 2025, let’s celebrate not just the spirit of women but also their growing financial independence. In India, women increasingly take charge of their financial future — making informed choices about investments, tax savings, property ownership, and entrepreneurship. To support this journey, the government offers various tax benefits and financial incentives to empower women. While the Income Tax Act does not explicitly provide gender-specific tax benefits, there are several exemptions and provisions that women can leverage to boost their savings and income. Let’s explore them in detail in this article.

What are the Tax Benefits for Women?

Below, we have listed the tax benefits provided for women in India:

Tax Benefits for Women Entrepreneurs

Women-led businesses in India are rapidly growing, and the government offers special tax benefits and loan schemes to support women entrepreneurs.

Presumptive Taxation Scheme (Section 44AD):

• Simplifies tax filing for women running small businesses.
• Women entrepreneurs declaring income via digital transactions can pay only 6% tax instead of 8%.
• Increased turnover limit of ₹3 crore (from the earlier ₹2 crore).

These tax benefits aim to promote financial autonomy and business growth for women in India.

Tax Benefits on Education Loan

Women pursuing higher education in India or abroad can claim 100% tax deductions on interest payments under Section 80E of the Income Tax Act.

Key Benefits:

• No upper limit on interest deduction.
• Tax benefits are applicable for up to 8 years after the loan repayment starts.

This benefit significantly reduces the financial burden of education loans, enabling women to invest in their future without financial strain.

Tax Benefits on Health Insurance Premiums

Health insurance is crucial for financial security, and under Section 80D, women can claim tax deductions on health insurance premiums.

Deduction Limits:

• ₹25,000 for self, spouse, and children.
• ₹50,000 for policies covering senior citizen parents.

This not only reduces the tax burden but also ensures financial protection during medical emergencies.

Retirement Planning Tax Benefits

Planning for retirement is essential for long-term financial security. Women can benefit from two major retirement schemes:

National Pension System (NPS):

• Additional deduction of ₹50,000 under Section 80CCD(1B) (over and above the ₹1.5 lakh under Section 80C).
• Partial withdrawals allowed for women-centric needs like marriage, education, home purchase, or medical emergencies.

Employee Provident Fund (EPF):

• Contributions are eligible for deduction under Section 80C.
• Tax-free returns upon maturity.

These schemes promote financial stability and ensure women have sufficient funds post-retirement.

Stamp Duty Concession for Women Homebuyers

Owning property is one of the most valuable investments, and several Indian states offer lower stamp duty rates for women to encourage home ownership. This benefit can lead to significant savings during property purchases.

Stamp Duty Benefits in Key States (2025):

• Delhi: 4% for women (compared to 6% for men).
• Haryana: 5% in rural areas and 3% in urban areas for women.
• Uttar Pradesh: Women get a ₹10,000 rebate on stamp duty.
• Rajasthan & Punjab: Women pay 1-2% less stamp duty than men.
• Maharashtra: Women pay 1% lower stamp duty than men.

Lower Home Loan Interest Rates

Financial institutions offer home loans at 0.05% to 0.1% lower interest rates for women borrowers. Additionally, women purchasing their first house under the Pradhan Mantri Awas Yojana (PMAY) can avail of subsidies up to ₹2.67 lakh.

Tax Deductions for Women Homebuyers:

• Section 80C: Deduction of up to ₹1.5 lakh on principal repayment.
• Section 24(B): Deduction of up to ₹2 lakh on interest repayment.

A lower home loan interest rate combined with tax benefits significantly reduces the overall financial burden for women purchasing homes.

Note: Financial regulations and rates mentioned are subject to change. Consult with our tax experts to get the up-to-date information and make informed decisions.  

What are the Schemes Benefitting Women Financially?

Here is the list of schemes designed to support the women in terms of entrepreneurship and financial growth.

Start-Up India Scheme

The Start-Up India Scheme is part of a broader initiative launched by the Government of India to foster entrepreneurship across the country. While not exclusively focused on women, it supports women entrepreneurs as part of its broader objectives. The scheme facilitates bank loans between ₹10 lakh and ₹1 crore for setting up greenfield projects in manufacturing, services, trading, and activities allied to agriculture. At least one woman borrower per bank branch is eligible for this loan, provided she holds a majority stake in the business if it's a non-individual entity.

Mudra Yojana Scheme

The Mudra Yojana Scheme is a government initiative aimed at providing financial support to small businesses. It offers collateral-free loans to women entrepreneurs who wish to start or expand small enterprises such as beauty parlors, tuition centers, or tailoring units. The loans are categorized into three tiers: Shishu (up to ₹50,000), Kishor (₹50,000 to ₹5 lakh), and Tarun (₹5 lakh to ₹10 lakh). This scheme is particularly beneficial for women seeking to establish or grow micro and small businesses.

Annapurna Scheme

The Annapurna Scheme is designed specifically for women entrepreneurs who are setting up food catering units. Under this scheme, women can avail loans up to ₹50,000 to purchase kitchen equipment such as utensils and water filters. The loan is repayable in 36 monthly installments, and interest rates are as per prevailing market rates. A guarantor is required to secure the loan, and assets are taken as collateral by the bank.

Udyogini Scheme

The Udyogini Scheme provides financial assistance to women entrepreneurs involved in small businesses like agriculture and retail. Women between the ages of 18 and 45 can borrow up to ₹1 lakh, provided their family's annual income is below ₹45,000. However, there is no income limit for widowed, destitute, or disabled women. Additionally, a subsidy of 30% of the loan, up to ₹10,000, is available for widowed, destitute, or disabled women from SC/ST categories.

Mahila Udyam Nidhi Scheme

The Mahila Udyam Nidhi Scheme, offered by the Small Industries Development Bank of India (SIDBI), provides financial assistance of up to ₹10 lakh for setting up new small-scale ventures or upgrading existing projects. The loan repayment period is 10 years, including a five-year moratorium. Interest rates vary according to market conditions. This scheme helps women entrepreneurs establish or modernize their businesses with flexible repayment terms.

Dena Shakti Scheme

The Dena Shakti Scheme is designed to support women entrepreneurs in various sectors such as agriculture, retail, manufacturing, and small enterprises. It offers a combination of term loans and working capital to women who own at least 51% of the business. The scheme aims to empower women by providing them with the necessary financial resources to grow their businesses. However, specific loan amounts and interest rates may vary based on market conditions and the bank's policies.

Public Provident Fund (PPF)

The Public Provident Fund (PPF) is a stable long-term investment option that offers financial security for women. It provides an interest rate of around 7.1% per annum, compounded annually, and is tax-free. Contributions are eligible for tax deductions under Section 80C up to ₹1.5 lakh annually. The scheme allows flexible investments between ₹500 and ₹1.5 lakh per year and has a tenure of 15 years, extendable in five-year blocks. As a government-backed scheme, PPF offers guaranteed returns, making it a low-risk investment choice. While not specifically designed for women, its stability and tax benefits make it a valuable tool for financial security for women and their families.

Thinking of Starting Your Own Business?

With these benefits in hand, women have immense potential to learn, drive business growth and financial independence. The key is to choose the right business idea, secure initial capital, and ensure proper registration and legal compliance. As your business grows, staying compliant and managing finances become equally important. But you don’t have to do it alone — IndiaFilings is here to turn your business dream into reality, guiding you every step of the way.

How Can IndiaFilings Help with Your Projects and Pursuits?

At IndiaFilings, we’re committed to empowering entrepreneurs and professionals by offering end-to-end business solutions. Whether you're launching your first business, applying for a trademark, or ensuring tax compliance — we've got you covered. Our expert team assists with:

• Business Plan: Helping you create a detailed and practical business plan to kickstart your journey.
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• Company Registration: Choose the company structure and assist in legally registering your business entity.
• Income Tax Filing: Ensuring timely and accurate filing of income tax returns.
• Tax Compliance: Handling your tax obligations, including GST, TDS, and more, to keep your business legally compliant.

Let IndiaFilings handle the complexities, so you can focus on building a thriving business.

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