Budget 2024-25: In the upcoming Union Budget 2024-25 many sectors and segments are expecting subsidies, tax relief, and other subsidies. One such segment is women. Finance Minister Nirmala Sitharaman, along with her team, is expected to introduce a range of policies focused on empowering women in the forthcoming full Budget. These policies may include the augmentation of subsidies and the implementation of strategies to regulate the costs of crucial commodities.
During her Interim Budget 2024 speech in February, FM Sitharaman disclosed that Rs 30 crore in Mudra Yojana loans had been distributed to women entrepreneurs. Additionally, 83 lakh self-help groups (SHG) are dedicated to empowering one crore women to become Lakhpati Didis, highlighting the significance of women’s empowerment through these schemes.
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Experts feel the full Budget 2024 is anticipated to include various policies dedicated to bolstering women’s well-being by implementing subsidies and regulating prices of crucial commodities to enhance their accessibility.
Key measures like direct benefit transfers (DBT) for essentials such as cooking gas are poised to ease their financial strain. Moreover, an augmented allocation towards public healthcare institutions and the proposal of complimentary or discounted health assessments are in the offing to enhance the healthcare landscape for women.
One sector that needs considerations is tax relief to women. Tax relief or benefits for women can differ significantly from country to country, contingent upon factors such as marital status, employment status, and parental responsibilities. Let’s explore some prevalent types of tax relief or benefits that women might qualify for in different regions:
Marital Status: Tax relief for married women can include benefits such as joint filing options or tax credits for married couples.
Employment Status: Working women may be eligible for tax deductions related to work-related expenses, retirement contributions, or education expenses.
Parental Responsibilities: Women with children may qualify for tax credits, deductions, or benefits such as childcare subsidies or education savings plans.
What FM Sitharaman can offer in terms of tax relief
Concessional income tax slabs: “The government may consider reintroducing concessional income tax slab rates specifically targeted at women. This initiative would aim to provide economic empowerment and support gender equality by offering lower tax rates for women taxpayers. This step is expected to stimulate economic growth, enhance financial independence among women, and promote a more inclusive and equitable tax system,” said Dr. Suresh Surana, Founder, RSM India.
Tax deductions for parents: “Many countries such USA, Canada, etc. offer tax credits or deductions for parents, which can be particularly beneficial for single mothers or women who are the primary caregivers. These credits help alleviate the costs associated with raising children and contribute to ensuring the well-being of families across different socioeconomic backgrounds,” Surana added.
Medical expenses: “Deductions for medical expenses can be particularly relevant for women who incur higher healthcare costs, such as maternity expenses or treatments not covered by insurance. Further, an enhanced deduction u/s 80D for Mediclaim insurance paid on policies taken on behalf of women,” he added.
Business owners: Women who are self-employed or own businesses may be eligible for a specific entrepreneurial deductions in addition to their business expenses, home offices, or start-up costs.
Tax rebate: Expectations are high for an increase in the tax rebate to Rs 7.5 lakh, offering relief to middle-income taxpayers. This adjustment could potentially encourage spending and investment, contributing to economic growth. Individuals falling under this income threshold, post standard deductions, would enjoy exemption from income tax, potentially encouraging increased spending and investment, thereby contributing to economic growth.
Surana had previously said increasing the basic exemption limit to Rs 3,50,000 to provide relief to a significant number of taxpayers.
“Increase in the basic exemption limit will benefit a large number out of the approximately 7 crore taxpayers and provide them with some insulation against inflation,” said Surana.
Union Budget 2023
In Budget 2023, Finance Minister Sitharaman highlighted the success of the Deendayal Antyodaya Yojana National Rural Livelihood Mission, which mobilized rural women into 81 lakh Self Help Groups (SHGs). She emphasized the need to propel these groups towards the next level of empowerment by establishing larger producer enterprises or collectives, each comprising several thousand members. These groups will receive support in the form of raw materials, improved design, quality, branding, and marketing for their products.
Furthermore, the budget allocated over Rs 2.25 lakh crore to support small farmers through the Pradhan Mantri Kisam Samman Nidhi, benefiting around three crore female farmers.
To commemorate Azadi Ka Amrit Mahotsav, the government launched a new one-time small savings scheme, which will be available for a period of two years up to March 2025. The Mahila Samman Savings Certificate offers a deposit facility of two lakhs—made either in the name of a woman or girl—for a tenure of two years at a fixed rate of interest of 7.5 per cent with partial withdrawal option.
The allocation of funds to the Ministry of Women and Child Development (MoWCD) in the fiscal year 2023-24 also got a significant boost. The budget for the ministry has been augmented by Rs 267 crore, escalating from Rs 25,172.28 crore in the previous fiscal year to Rs 25,448.75 crore, showcasing a 1.08% increment.