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.