Old tax regime continues to be favoured by 63% of taxpayers, says survey | Mint
Active Stocks
Tue Feb 27 2024 15:57:55
  1. State Bank Of India share price
  2. 749.70 -1.23%
  1. Tata Steel share price
  2. 144.15 1.09%
  1. Power Grid Corporation Of India share price
  2. 292.50 1.65%
  1. Sun Pharmaceutical Industries share price
  2. 1,579.10 1.42%
  1. ITC share price
  2. 411.15 0.48%
Business News/ Money / Personal Finance/  Old tax regime continues to be favoured by 63% of taxpayers, says survey
BackBack

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

In a recent survey, 63% of taxpayers clung to the old tax regime in India, while 74% of women showed more financial awareness than men by calculating their taxes under both regimes.

Despite the introduction of a new tax regime, 63% of Indians prioritize long-term investment by sticking with the familiar Old Tax Regime.Premium
Despite the introduction of a new tax regime, 63% of Indians prioritize long-term investment by sticking with the familiar Old Tax Regime.

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. 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Deepika Chelani
A business media enthusiast. She covers the markets and personal finance beat for LiveMint.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 11 Dec 2023, 05:36 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App