With Independence Day around the corner The Prime Minister of India Mr. Narendra Modi is all geared up to present something interesting to the citizens of this nation. On the most promising part of the Prime Minister’s speech is expected to the Zero Income Tax for Women in India.
Here are the couple of reasons due to which some salary income of the women in India can become completely tax free.
- As per various statistics, there has been a drastic drop in the women workforce in India. It has fallen more than 10% over the years. India’s female labour force participation has gone down manifold, if women are paid for their work then, in that case, they become financially empowered and independent. This is one of the major reasons due which the above-mentioned rule can come into being.
- The number of Income taxpayers is anyway less, as compared to the population of the country. Among those, the women are a very small fraction, out of which working women are even less. Making the Income Tax for the working women exempt, will not be much of a burden for the Government of India. This loss will be compensated by the women joining workforce and spending on the goods and services, which will come to the Central Government in the form of GST.
- Another reason for the proposition of this idea is, many of the working women pay extra as compared to working men in terms of keeping a domestic help, cook and day care where they keep their children when they go to work. This exemption may come as a big relief for working women, who otherwise shell out a lot of money in fulfilling their basic needs.
If this rule comes into being, the employers can hire more female work-force and create a balance at work place.