Old Tax Regime: According to the survey, the old tax regime was liked the most among those earning more than Rs 7.5 lakh annually. Tax payers with annual income of Rs 12-15 lakh chose the old regime, focusing on long-term savings over liquidity facility.
New Tax Regime: A major change has been made in the tax system by the Finance Ministry recently. Under this, you can file ITR under old tax regime and new tax regime. A survey has revealed that the old tax regime remains the preferred option among the salaried class. At the same time, 49 percent businessmen have opted for the new tax regime. Let us tell you that the old tax regime gives tax exemption on long term investments in savings and insurance etc. Before the general budget to be presented on 1 February, the focus of tax payers remains on income tax exemption.
Salaried class preferred the old tax regime
A survey was conducted by Policybazaar among 1,263 tax payers. Salary clause, businessmen and retired investors were included in this. On the basis of a survey published in Times of India, it was found that 39% liked PPF the most for tax saving. After this, life insurance was the choice of 34% for tax saving. According to the survey, the old tax regime was liked the most among those earning more than Rs 7.5 lakh annually. Tax payers with annual income of Rs 12-15 lakh chose the old regime, focusing on long-term savings over liquidity facility.
The hassle of paperwork is troubling the youth!
Experts say that tax payers are thinking about both the immediate tax benefits and long term benefits from retirement saving schemes like PF, pension and insurance. More importance was given to tax exemption in the South, here 65% chose the old tax regime. The survey also revealed that the youth aged 18-20 selected the new tax regime to avoid the hassle of fund lock-in and paperwork. Let us tell you that more than two-thirds of the salaried class like the old tax regime. Along with this, focus is being placed on long term investment and investment.
On the other hand, businessmen are liking the new tax regime citing benefits like liquidity, low tax rate and less paperwork. Earlier, people had focused more towards the new tax regime. Let us tell you that still more than 63% taxpayers are giving importance to the old tax regime, while 37% have shifted to the new tax regime. This situation is different in women.
