Income Tax System: Significant Revision The salaried class does not support the new income tax policy; see the most recent information here

 Income Tax System: Significant Revision The salaried class does not support the new income tax policy; see the most recent information here

Income Tax System: India now has two income tax systems in place. People's opinions were sought on this in the study, and a number of startling revelations were made.

Income Tax System: The public has not been very fond of the Indian government's new tax strategy. Most people still like the previous tax structure. That system, in his opinion, was much simpler than the current one. This public view was shown in a recent poll. It was also shown that women have a much superior comprehension of the tax system and its computations than do males. Women have adapted the previous tax system into society more readily than males did, and they also know more about the current tax system.

Women are more knowledgeable about finances than men are.

A recent Policy Bazaar poll found that 63% of respondents preferred the previous tax structure. Additionally, 37% believed the new method is superior. Surprising findings concerning women's financial literacy were found in this study. In both the old and new tax systems, women did a better job of calculating their taxes. Just 71 percent of males and 74 percent of women met this criterion.

Businessmen loved the new, employees enjoyed the old.

According to this study, two thirds of working adults prefer the previous tax structure. However, almost half of the businesspeople think the new system is superior. Questions on employment, business, professions, and retirement were asked in the poll. Those who make between Rs 7.5 lakh and Rs 15 lakh a year tend to favor the previous tax regime. Similar trends were seen in South India, where 65 percent of the population still uses the previous tax structure. But just 43% of respondents in Eastern India believe the new tax structure is superior.

Youth interest in long-term investments has grown.

The survey's findings indicate that various age groups have rather varied perspectives on these two tax regimes. People in the 18 to 30 age range choose short-term investments over long-term ones, with 62% of them choosing the previous tax regime. Between the ages of 18 and 50, this tendency was seen. This indicates that younger people are becoming more conscious of long-term investments.

Similar pattern seen in smaller cities

Cities in Tiers 2 and 3 also experienced the same circumstances. The poll found that around 61% of small town residents preferred the previous tax structure and prioritized long-term investments. Traditional investing strategies, such as ULIP, PPF, and life insurance, are still highly favored by the public. The majority of consumers want to make long-term investments in these antiquated schemes. Nonetheless, it's evident that individuals in both large cities and small communities recognize the value of long-term investment. The public's awareness of investing has grown. Plans for insurance have also grown in popularity.

The government is pushing a new framework.

To make the new tax structure appealing, the administration made adjustments to the budget that was submitted in February 2023. It was revealed that taxpayers who choose to use the new tax system would have the advantage of deductions. Even said, the majority of taxpayers still favor the previous tax structure.