To encourage women entrepreneurs, the Indian government offers them certain tax and monetary benefits. These include property tax rebate, stamp duty concession, low interest rates on home loans, credit subsidy for houses etc.
Stamp duty concession is offered by some states if a property is registered under the name of a woman. According to the Delhi government’s official website, stamp duty rate (payable at the time of registration of property if it is acquired by sale deed/conveyance deed/gift deed) for a male is 6% and for a female is 4%.
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, as a woman, one must check if the state you’re buying your property in offers any concessional rate during its registration.
Some Municipal Corporations also offer rebate on property tax. Here also, the rates vary from one municipal corporation to another within a state. So, women must look for these conditions before getting their property registered.
Apart from concession on stamp duty and rebate on property tax, women are also offered lower rate of interest on home loans by banks for property registered under a woman’s name. State Bank of India offers a concession of five basis points or 0.05% (1 bps=0.01%) for home loans to women.
Under the ‘Housing for All’ programme, the house for which subsidy is availed under the Pradhan Mantri Awas Yojana (PMAY) should either be co-owned by a woman or the woman should be applicant of the subsidy.
For many years up until FY 2011–2012, women and men had different tax slabs and women had to pay less tax as compared to men earning the same amount. But in FY 2012–2013, this was done away with and men and women have the same tax slab since.
Surcharge is applicable from income above Rs. 50 lakh. Health and educational cess at the rate of 4% gets added to the income tax payable in all cases. A rebate of Rs. 12,500 is available for women having a net taxable income of up to Rs 5 lakhs under Section 87A. For women above 60 years and below 80 years, the basic tax exemption limit in a financial years is Rs 3 lakh. For women above 80 years, this limit increases to Rs 5 lakh.
Note: This article was originally published here.