Is the New Tax Regime Accepted Well in India? A Salaried Individual’s Perspective

Ms. Tejaswini Shevate; Dr. Smita Pande

doi:https://doi.org/10.17492/jpi.vision.v10i1.1012303

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Is the New Tax Regime Accepted Well in India? A Salaried Individual’s Perspective

Tejaswini Shevate, Smita Pande

Vol 10 , Issue 1 , January - June 2023 | Pages: 36-50 | Research Paper

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https://doi.org/10.17492/jpi.vision.v10i1.1012303

Published Online: June 24, 2023

Author Details ( * ) denotes Corresponding author

1. * Tejaswini Shevate, Assistant Professor, Finance and Taxation, Indira School of Business Studies , Pune, Maharashtra, India (tejaswini.shevate@gmail.com)

2. Smita Pande, Assistant Professor, Finance and Taxation, MGE Society, Pune’s Huzurpaga Mahila Vanijya Mahavidyalaya, Pune, Pune, Maharashtra, India (smitasubhashpande@gmail.com)

The Indian government’s New or Alternate or Concessional Tax Regime seems to shift taxpayers’ focus from saving to spending. However, Indians prioritize saving for unexpected hardships, hindering the creation of a spending culture. Implementing Social Security Schemes akin to developed countries can encourage Indians to break their savings habit, increase disposable income, and enhance their standard of living. Since the Finance Budget 2020, individuals have been uncertain about choosing the New or Old Tax Regime. The new regime simplifies the Income Tax Law, reducing reliance on tax professionals. In contrast, the old regime incentivized saving through investment instruments. This research analyzes individual taxpayers’ preferences and their awareness of the two-tax system, assisting them in making informed decisions about their tax regime selection.

Keywords

New tax regime; Budget 2023; Simplification of Indian tax structure; Government; Individual tax payers; Awareness; Perception

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