Journal Press India^®

Author Details ( * ) denotes Corresponding author

This study looks at the level of tax literacy among Indian people in the context of new tax regime. It shows that taxpayers who don’t know much about taxes don’t get regular updates on what they need to know. The current research follows the idea of tax literacy that Kaur and Sekhon put forward in their study. To be basic at tax literacy, one needs to know about the rights and responsibilities as a taxpayer. To be advanced at tax literacy, one should know how to figure out income tax liability legally and procedurally. Functional Tax Literacy measures how well someone can file their own Income Tax Returns (ITR) efficiently and deliberately. Using Kaur and Sekhon’s conceptual framework of tax literacy, the levels of tax literacy were found for taxpayers from different groups formed on the basis of socio-demographic factors. The present study reports the significant variations in the level of tax literacy on the basis of socio-demographic factors. And also found the significant factor thoroughly contributing towards the level of tax literacy. Statistical tests give information that is useful for making suggestions for personalized state policies, starting tax education early on, and encouraging people to do their own taxes. Specialized suggestions are made for certain groups to help them learn more about taxes and make the Indian population better informed about these issues.

Keywords

Tax Literacy; Basic Tax Literacy; Advanced Tax Literacy; Functional Tax Literacy; Taxpayers; Socio-demographics; India

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