‘Indian taxpayers prefer old income tax regime over new tax regime’; here’s why

Old versus new income tax regime: More than 63% of Indian taxpayers nonetheless observe the old income tax regime, whereas 37% have switched to the new one, in response to a survey carried out by PB Fintech, the guardian firm of insurance coverage market Policybazaar.
The survey, which included 1,263 individuals from 350 cities throughout the nation, revealed that ladies have been extra meticulous in choosing their tax regime.About 74% of girls selected their tax regime primarily based on cautious calculations, in comparison with 71% of males, in response to an ET report quoting the survey.
Among those that most well-liked long-term funding plans and caught to the old regime, provident fund (PF) investments remained the preferred, adopted by life insurance coverage and different life insurance coverage devices.Sarbvir Singh, joint group CEO of PB Fintech, commented that the truth that 80% of people made a aware alternative primarily based on tax legal responsibility displays collective monetary prudence. According to Singh, this foresight was noticed throughout totally different tiers, income teams, age teams, and genders.

Out of the respondents, 82% have been males and 15% have been girls. Furthermore, 67% have been salaried people, 15% have been enterprise professionals, 6% have been professionals reminiscent of legal professionals and medical doctors, and 12% have been retired.

The survey additionally found that one-third of the individuals didn’t carry out any calculations earlier than choosing their income tax regime. Among the remaining two-thirds, 38% primarily based their choice on recommendation from monetary advisors.
Approximately 46% of respondents favored the old income tax regime as a result of tax-free standing of their long-term investments. The survey revealed that 67% of salaried people caught with the old income tax regime, whereas 49% of businesspersons most well-liked the new income tax regime.
The new income tax regime is now the default income tax regime from monetary 12 months 2023-24, that’s for evaluation 12 months 2024-25. Individuals choosing the old income tax regime must select the choice when submitting their income tax returns.