Old tax regime continues to be favoured by 63% of taxpayers, says survey

 


A recent survey conducted by Policybazaar reveals that despite the introduction of the new tax regime in India, the old tax regime continues to be favoured by 63% of taxpayers, while 37% opt for the new regime.

According to a press release, the findings reveal a heartening level of proactiveness as 71% of respondents based their choice on meticulous calculations.

Gender dynamics also play a role in shaping investment behaviour, as the survey highlighted. Surprisingly, women exhibited a higher level of financial awareness compared to men, with 74% of female respondents calculating their tax liability under both the old and new regimes, slightly surpassing the 71% of their male counterparts. 

Another interesting aspect revealed by the survey is the changing mindset of different age groups. Contrary to expectations, 62% of respondents in the 18-30 age bracket, who are typically associated with choosing short-term investments, opted for the old tax regime due to the allure of long-term investments. 

In fact, a majority of respondents in the 18-50 age group leaned towards the old regime, suggesting a rising openness towards long-term investment strategies.

Additionally, respondents from Tier 2 and 3 cities are not far behind their counterparts in metros, with 61% and 59% respectively consciously opting for the old tax regime and strategically planning their investments.

In terms of preferred tax-saving instruments, the survey highlighted that PPF and life insurance, including ULIPs and traditional policies, emerged as the top choices among respondents, with 39% and 34% respectively. 

Overall, the findings of the survey suggest a collective shift in financial behaviour among Indian consumers. There is a heightened awareness and a prudent decision-making process when it comes to investments, with a clear preference for long-term financial stability. 

The growing popularity of insurance as a preferred tax-saving instrument indicates a nuanced and evolving financial landscape, paving the way for a more secure and forward-looking future for investors in India, as per the press release. 

Comments

Post a Comment

Popular posts from this blog

Senior Citizen Train Ticket Discount: Government has issued a new statement regarding giving discount to senior citizens on train tickets, know the details here

Image
  Senior Citizen Train Ticket Discount: Once again a demand has been made in the Lok Sabha to give discount to senior citizens on train tickets. Senior Citizen Train Ticket Discount:  Railways has withdrawn the discount given to senior citizens on train tickets since the Corona period. However, from time to time there has been a demand to restore this concession given to senior citizens in trains. Even in the winter session of the Lok Sabha, some members raised the demand for increasing fare concessions and facilities for senior citizens traveling in trains. However, even before this, Railway Minister Ashwini Vaishnav has told in the Lok Sabha that during the train journey, every passenger is given an average subsidy of 53 percent on the train ticket. Apart from this, he also told who gets discount on tickets while traveling by train. Demand for discount in train tickets raised again During Zero Hour in the House, Janata Dal (United) MP Kaushalendra Kumar said that before the ...
Read more

Cash Transaction Rules: Income tax rules on cash transaction between Husband-Wife and Son-Father, know rules

Image
  Cash Transaction Rules: Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between you and your wife or between father and son? If you also have these questions in your mind, then let us know their answers… If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family. Income tax sends notice? According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the I...
Read more

Have a Current/Savings Bank Account? Know the Cash Deposit Limits under Income Tax Act to avoid Penalties and Notices

Image
  Adhering to cash deposit and withdrawal limits is crucial to remain compliant with the Income Tax Act in India. This article aims to elucidate the various facets of cash-related regulations, encompassing savings and current accounts, fixed deposits, credit card bill payments, real estate transactions, and more.  Cash Deposit Limits in Savings and Current Accounts The Indian Income Tax Act imposes specific regulations on significant cash deposits in savings accounts. Individuals accumulating INR 10 lakh or more during a fiscal year must notify tax authorities.  For current accounts, this threshold is set higher at INR 50 lakh. Although not immediately taxed, financial institutions report transactions exceeding these limits.  Cash Withdrawal and TDS under Section 194N  Section 194N outlines TDS rules for cash withdrawals. A 2% TDS is levied on withdrawals exceeding INR 1 crore within a fiscal year. Non-filers face a 2% TDS on withdrawals over INR 20 lakh and a 5...
Read more