Tax and Monetary Benefits for Women Entrepreneurs in India

To encourage women certain tax and monetary benefits are offered to women by the Indian Government. These include: Property tax rebate, stamp duty concession, low interest rates on home loans, credit subsidy for houses etc.

Up until FY 2011–2012 women had different income tax slab from men according to which they had to pay less income tax than men earning the same amount. However, from FY 2012–2013, this was done away with and men and women have the same income tax slab since then.

Stamp Duty Concession on Registration of Property

Stamp Duty concession is offered by some states, if the property is registered under the name of a woman. According to Delhi Government official website, stamp duty rate ( payable at the time of registration of property if it is acquired by way of sale deed/ conveyance deed/ gift deed ) for a male is 6% and for a female is 4 %. The stamp duty is calculated on circle rate or consideration rate of the property applicable in the area, whichever is more.

Stamp duty charges vary from one state to another. Therefore, one must check if the state offers any concessional rates when the property is being registered in the name of a woman.

Property Tax Rebate

Some Municipal Corporations also offer rebate on property tax. Here also, the property tax rates vary from one Municipal Corporation to another within a state. So, check the conditions before getting the property registered under the name of a woman.

Lower Rate of Interest

Apart from concession on stamp duty and rebate on property tax, banks also offer lower rate of interest on home loans for Property registered in a woman’s name.

SBI offers concession of 5 basis points or 0.05% ( 1bps=0.01%) for home loans to women.

Credit Subsidy on Purchase of House

Under ‘Housing for All’ programme, the house for which the subsidy is given under Pradhan Mantri Awas Yojana (PMAY), should either be in the name of the woman who is applying for the subsidy or the woman should be the co-owner of the house.

Various Schemes Benefiting Women are given in the images below

Income Tax Slabs

For many years up until FY 2011–2012 women and men had different tax slabs and women had to pay less as compared to men who earned the same amount. But in FY 2012–2013, this was done away with and men and women have the same tax slab since then.

FY 2020–2021 Income Tax Slab

Surcharge is applicable from income above Rs. 50 lakh. Health and Educational cess at rate of 4% will be added to the income tax payable in all cases. Rebate of Rs. 12500 is available for women having net taxable income of up to Rs. 5 lakh under section 87A.

For Women above 60 years and below 80 years the basic tax exemption limit is Rs. 3 lacs in a Financial Year.

For women above 80 years the basic tax exemption limit is Rs.5 lacs.