2. Section 80C

Now the other important section is Section 80C where salaried women can claim deduction up to Rs 1.5 lakh by investing in various tax-saving options under the Section 80C umbrella. Every salaried woman needs to look at the her peculiar circumstances, for selecting which option she should choose to claim the deductions under Section 80C where the amount has been increased from Rs 1.lakh to 1.5 lakh only in the last announced budget. 

One tax saving option under Section 80C is the basket of provident funds. Naturally every salaried woman will be contributing something to Employee Provident Fund and some amount must be contributed by the employer also, so that it gets qualified under Section 80C.

3. Invest in Public Provident Fund

Apart from this, PPF account is highly recommended for every individual, including salaried women, because they may have job today but not tomorrow or maybe she is nearing retirement. It will differ from woman to woman and in our opinion for young salaried women, those who are under 40 years of age, up to Rs 50000 combined for EPF & PPF should be invested in the combination of the two.

However, if EPF is already 40,000-50,000, then additional 10,000-20,000 can be kept aside for PPF annually as per the saving capacity of the salaried women. This is the safest option where they can not only save tax in the year of contribution, but also the interest earned from such investments is tax free and when the amount is withdrawn after maturity, that amount is also tax free.

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