Updated December 23rd, 2023 at 15:24 IST
Over 60% taxpayers still preferring old tax regime to file IT returns: Survey
The survey ‘India’s Investment Readiness’ underscored increasing ‘financial smartness’
In a recent survey conducted by Policybazar.com, “India’s Investment Readiness” conducted across 350 cities with those who fall within the taxable income bracket revealed that 63 per cent of taxpayers prefer the old tax regime while filing their Income Tax Returns over the new one. While this was a choice for FY 2023-2024, the new tax regime will be mandatory from the next financial year.
The survey revealed that Indians are becoming financially smart and 80 per cent of them were aware of their choice of the tax regime. While being aware of benefits and liabilities, the majority chose the old regime and 37 per cent of the lot went for the New Regime owing to the tax-saving benefits and a sense of security offered by long-term savings instruments that one can leverage in the former.
Age-wise, the survey report indicated a shifting mindset as 62 per cent of respondents in the 18-30 age bracket, who would typically be expected to choose short-term investments and gains, opted for the Old Tax Regime, citing long-term investments as the reason.
Along with this preference, a shift in dynamics was also seen with 74 per cent of women, who actively calculate their tax liability under both regimes, in contrast to 71 per cent of men. Across locations and genders, a positive trend emerges — demographic sections that have traditionally had limited access to financial knowledge are on a recovery path because of their keen, calculation-based involvement in financial planning.
The survey revealed that there was a growing popularity of insurance as a preferred tax-saving instrument that reflects a nuanced and evolving financial landscape, suggesting a more secure and forward-looking future for India's investors.
Published December 15th, 2023 at 18:16 IST