Over 63% of Indian taxpayers stick to old regime, says report

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Categories: Income Tax, News

More than 63% of tax-paying Indians are still on the old tax regime, compared to the 37% who have moved to the new one, found a survey conducted by PB Fintech, the parent company of insurance marketplace Policybazaar.

The survey, which covered 1,263 respondents across 350 cities in the country, found out that women were more particular about choosing the tax regime, with 74% of them having picked the tax regime through hard calculations compared to 71% among men.

Among those choosing long-term investment plans and sticking to the old regime, provident fund investments continue to be the most popular, followed by life insurance and life insurance instruments.

“The fact that 80% of the individuals made a conscious choice based on tax liability reflects a collective financial prudence… this foresight was more or less uniformly represented across tiers, income groups, age groups and genders,” said, joint group CEO, PB Fintech.

While 82% of the respondents were men, 15% were women. Besides, 67% of respondents were salaried, 15% business professionals, 6% professionals such as lawyers and doctors, and 12% retired.

The survey also found out that a third of the respondents had not done any calculations before choosing the tax regime. Among the remaining two-thirds, 38% took the decision based on the advice they received from their financial advisors.

On being probed about why they chose a specific tax regime, 46% said they favoured the old regime because of the tax-free status of their long-term investments and 26% cited their retirement plans as the reason.

The survey also found out that 67% of the salaried section stuck to the old tax regime while the new tax regime was favoured by 49% businesspersons, the highest among all categories.

Source from: https://economictimes.indiatimes.com/tech/technology/over-63-of-indian-taxpayers-stick-to-old-regime-says-report/articleshow/105882993.cms