A recent research revealed that 63% of respondents favoured the Old Tax Regime, while 37% preferred the New Tax Regime because of the tax-saving benefits.
A survey by policybazaar.com, titled 'India's Investment Readiness,' analysed the investment mindset of individuals within the taxable income bracket across 350 cities.
The findings reveal that 71% of respondents are basing their choices on meticulous calculations, showcasing a proactive approach to tax planning. A significant shift in gender dynamics was also noticed with 74% of women calculating tax liability under both regimes, slightly surpassing the 71% of men.
Furthermore, the survey analyzed investment behaviour across gender, region, employment type, and age groups, highlighting a growing openness towards long-term investments.
The report indicated that a shifting mindset is observed among respondents in the 18-30 age bracket, with 62% opting for the Old Tax Regime, citing long-term investments as the reason. This trend was consistent across the 18-50 age group, indicating a growing inclination towards long-term investment strategies.
The survey highlighted the Public Provident Fund (PPF) and life insurance as the most favoured tax-saving instruments, chosen by 39% and 34% of respondents, respectively.
"The survey covered an array of tax-saving tools, including ELSS, home loans, NPS, SSY, Tax Saver FD, donations/ charity, SCSS, NSC, Infrastructure Bonds, and education loans, with percentages ranging from 3% to 39%. The emergence of Insurance and PPF as top tax-saving tools reflects a shift from traditional savings instruments towards diversified investments," the report said.
Sarbvir Singh, President and Joint-Group CEO at PB Fintech, expressed optimism about the survey findings, stating, "The trends showcased in the report indicate a promising future for financial security. Taxpayers are now considering both immediate tax benefits and long-term gains from retirement-linked instruments like provident funds, pensions, and insurance."