The survey, which included 1,263 respondents from 350 cities across the country, found that women were more careful about choosing their tax regime. About 74% of women chose their tax regime based on careful calculations, compared to 71% of men, according to an ET report citing the survey.
Among those who preferred long-term investment plans and stuck with the old system, Provident Fund (PF) investments remained the most popular, followed by life insurance and other life insurance instruments. Sarbvir Singh, Joint Group CEO of PB Fintech, commented that the fact that 80% of individuals have made a conscious decision based on tax liability reflects collective financial prudence. According to Singh, this foresight has been observed across different levels, income groups, age groups and genders.
How Indians prefer to calculate taxes
Of the respondents, 82% were men and 15% were women. In addition, 67% were white-collar workers, 15% were business people, 6% were professionals such as lawyers and doctors, and 12% were retired.
New Income Tax System vs. Old System: It is IMPORTANT TO DECIDE NOW | Income tax rates 2023-24
The survey also found that a third of participants did not do any calculations before choosing their income tax system. Of the remaining two-thirds, 38% based their decision on advice from financial advisors.
Around 46% of respondents supported the old income tax system due to the tax exemption of their long-term investments. The survey found that 67% of employees stuck with the old income tax regime, while 49% of entrepreneurs preferred the new income tax regime.
The new income tax system is now the standard income tax system from the financial year 2023-24, i.e. for the assessment year 2024-25. Anyone who opts for the old income tax regime must choose this option when submitting their income tax return.
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