Female salaried employees are paying less tax than their male counterparts due to lower tax slabs and better investments, with the percentage of women with a low tax ratio of 0-5 per cent higher than their male counterparts, according to the latest study.
As per the findings of the ‘India Tax Ratio 2011′ report by Tax Spanner, an online income tax return filing portal, the average tax ratio of females salaried employees in major Indian cities is 4 per cent, as against 6 per cent for males.
Besides, around 76 per cent of the females have a tax ratio of less than 5 per cent, compared to 59 per cent in the case of male salaried employees. The tax ratio is the percentage of the salary that one pays as tax. The study covered employees from over 500 corporates in major cities, including the Delhi NCR, Mumbai, Chennai, Bangalore and Hyderabad.
The report said that among the major metros, Chennai and Delhi NCR had the lowest average tax ratio of 5 per cent, followed by Mumbai and Hyderabad at 6 per cent and Bangalore at 7 per cent.
This is despite the fact that salaried employees in Mumbai are earning 40 per cent more on average than their counterparts in Chennai and the Delhi NCR.
Regardless of the economic situation we all need to file our tax returns and report our earnings to the Governmental agencies annually. The rules are the same regardless of your gender. It is important to be involved and understand the tax return that is being signed by both spouses because both parties are equally responsible for truthfulness, completeness and accuracy of the tax returns.
There are number of tax saving techniques that can be utilized if planned timely and correctly. It is important to have a professional, reliable, trustworthy, and caring CPA who will help you to be on the right track. Of course, together with a great team of Financial Planner, Attorney, Investment Advisor and CPA you can be in much better position.