Explore special provisions in Indian financial and taxation laws empowering women. From savings schemes to tax exemptions, understand the benefits for females.
Indian laws are designed impartially and certain provisions are inserted for females specifically. Herein assembled various extracts from different laws for her.
Starting with girls a scheme was introduced by government in 2015 named Sukanya Samriddhi Account Scheme where minimum deposit of INR 250 and maximum deposit of INR 1.5 lakhs in a financial year can be made. Only one account can be opened in the name of a girl till she attains the age of 10 years in post offices/authorized banks. Withdrawal is allowed for the purpose of her higher education. The account can be prematurely closed in case of her marriage after she attains the age of 18 years. The account shall mature on completion of a period of 21 years from the date of opening of account. Deposit qualifies for deduction under section 80C of the Income-tax Act,1961 and Interest earned on the same is free from Income Tax under section 10.
Recently in the Union Budget 2023, Mahila Samman Bachat Patra was introduced to celebrate Azadi Ka Amrit Mahotsav which will be available up to March 2025. Females can deposit up to INR 2 lakhs at fixed interest rate of 7.5% with partial withdrawal benefit. This saving scheme can be started by any age of female. The application for the same shall begin from 1st day of April 2023.
Gold is that precious commodity, sale of which is covered under the Income-tax Act, 1961. A married woman can keep gold up to 500 grams and unmarried up to 250 grams without questions asked from IT purview. However, with explained sources there is no such limit applicable. Even when gold is devolved from ancestors, their will is considered as legitimate source. When such gold is sold then capital gain shall be taxable in the hands of the assessee subject to indexation benefit in long term capital gain and slab wise taxation in case of short term capital gain.
Gifts received by woman on the occasion of her marriage is not taxable.
Let’s now understand clubbing provision of the Income-tax Act, 1961 where clubbing means the income shall be taxable in the hands of assessee on the income earned by another person.
As per section 64(1)(vi) of the Income-tax Act,1961, Income arising to son’s wife on the assets transferred to her directly or indirectly shall be clubbed with the income of father-in-law or mother-in-law subject to assets were transferred without adequate consideration by father-in-law or mother-in-law. For this purpose, any sum transferred to son’s wife which has been invested into business by her then income shall be proportioned basis investment.
As per section 64(1)(ii), remuneration in cash or kind to spouse from a concern in which the individual has a substantial interest is to be clubbed. Such provision shall not apply in case of remuneration is received in professional capacity. Therefore, the income shall be clubbed in hands of spouse who has substantial interest in such concern regardless of husband or wife.
In case of minor child, income earned except derived from his/her own calibre shall be clubbed with the income of the parent whose income is greater irrespective of mother/father.
Under the Companies Act, 2013 at least one-woman director shall be on the board in case of every listed company or in case of any unlisted company where paid up share capital is of 100 crores or more or turnover is of 300 crores or more.
As per Regulation 17 and 17A of SEBI Listing Order Disclosure Requirement Regulations 2015, the board shall comprise of optimum combination of executive and non-executive directors with at least one-woman director. It may be noted that BOD of the top 1000 listed entities shall have at least one independent woman director.
According to the Hindu Succession Act 1956, any individual born in Hindu Undivided Family (HUF) becomes a coparcener by birth. After the Hindu Succession (Amendment) Act, 2005 daughters are also considered as coparceners. Women can be Karta in the HUF. Wife is also considered as member in the HUF of husband and coparcener in HUF of paternal side irrespective of marital status.
State governments are also taking initiative to promote women entrepreneur by introducing various schemes/subsidies. For instance, Rajasthan government introduced Indira Mahila Shakti Udhyam Protsahan Yojana in 2019 where state has been providing loans of up to INR 1 crore for women meaning to start their own enterprise.
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will women empowerment reduce PMLA or corruption. Even a bank CMD is in involved in Nirav Mosi case. Women can and are getting huge loans unde PM rojkar yojana.
good article.nrw thinking .