Learn All About Income Tax On Fixed Deposits For Housewives
The 1961 Income Tax Act (ITA) taxes each individual’s income, regardless of whether they run a profitable business or are a housewife. The government has included a special area in the ITA for homemakers in order to guarantee smooth taxation procedures. This blog gathers important information on a housewife’s income tax exemption on fixed deposits. Learn about deductions, tax slabs, and other topics.
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The transparent collection of regulations that underpin the income deductions for various companies is the Indian taxes system. Everyone who falls within the specified slab, regardless of income level, is required to pay taxes to the government. This article will provide information on the taxes rules that apply to housewives in India as well as the exemption from income tax on fixed deposits held by housewives. Continue reading to learn more.
Income tax in the current circumstances for a housewife
According to the new tax regulations, a housewife who is under 80 years old and makes less than Rs 3 lakh is exempt from paying taxes for the financial year 2023–2024. The cap is Rs 5 lakh for very elderly citizens, or those who are 80 years of age or beyond.
Housewives only have to worry about filing taxes if their combined income from all sources exceeds certain predetermined thresholds. If their income falls below the specified thresholds, there is no tax to pay.
Women’s income tax slab
Women’s income tax slab under the revised FY 2023–2024 regulations:
For females under the age of 60:
| Income tax slab | Tax rates % |
| More than Rs 15,00,001 | 30 |
| Rs 12,00,001 Rs 15 lakh | 20 |
| Rs 900,001 Rs 12 lakh | 15 |
| Rs 6,00,001 Rs 9 lakh | 10 |
| Rs 3,00,001 Rs 6 lakh | 5 |
| Less than Rs 3 lakh | NIL |
For women between 60 to 80 years:
| Income tax slab | Tax rates % |
| More than Rs 10 lakh | 30 |
| Rs 5,00,001 Rs 10 lakh | 20 |
| Rs 3,00,001 Rs 5 lakh | 5 |
| Less than Rs 3 lakh | NIL |
For women above age 80 years:
| Income tax slab | Tax rates % |
| More than Rs 10,00,001 | 30 |
| Rs 5,00,001 Rs 10 lakh | 20 |
| Less than Rs 5 lakh | NIL |
Sources of revenue for homemakers
Housewives get money from a variety of ways other than regular jobs or self-employment. Important references consist of:
Expenses for the household:
Husbands may give money to wives to help with home expenses. The money is not included in the wife’s income even if it is deposited into her bank account.
Interest on fixed deposits:
Taxes apply to interest obtained from fixed deposits. The interest becomes part of the wife’s income and is taxable if it exceeds the exemption limit.
Investments made by husband under wife’s name:
For tax purposes, a husband’s income is seen to be his own if he invests it in his wife’s name. The wife is responsible for paying taxes on any profits she receives from these assets.
Gifts:
Any amount of a gift from a certain relative is tax-free. Presents from others that total more than Rs 50,000, however, are regarded as income and the housewife must pay taxes on the difference.
Tax deductions & exceptions for housewife
Indian housewives can reduce their taxable income by taking advantage of tax exclusions and deductions. The following are some salient points:
Medical expenses: Each financial year, housewives are eligible to deduct up to Rs 40,000 from their taxes for medical costs incurred for themselves or their dependents.
Savings schemes: The interest accumulated in a Post Office savings account is not subject to taxes. According to Section 10(15)(i), it is up to Rs 7,000 for joint accounts and up to Rs 3,500 for individual accounts.
Donations: A housewife may be eligible for a tax benefit under Section 80G if she donates to approved charity groups.
In conclusion, A housewife’s income tax on fixed savings is deducted only when it exceeds the prescribed threshold. The statute exempts housewives from paying taxes on a number of costs and savings. The wife is required to pay taxes if her income from her husband or other sources is within the specified tax slab. To support a just tax system, it is essential that you declare all of your income sources.
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