63% of taxpayers choose old tax regime: Report

ITR Filing 2023: Policybazaar in a recent survey revealed that 63% of taxpayers still preferred the old tax regime and only 37% the new regime. The respondents in the survey have attributed their preference due to the tax saving benefits and a sense of security offered by long term savings instruments available in the old regime.

Policybazaar report on ITR Filling

Policybazaar conducted an “India’s Investment Readiness” survey across 350 cities with those who fall within the taxable income bracket. The survey focussed on the mindfulness with which Indians choose their tax regime and analysed the drivers of this choice.

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The findings also revealed that 71% of respondents based their choice on meticulous calculation. As per the report, 62% of respondents in the 18-30 age bracket, opted for the old tax regime citing long-term investments as the reason.

"It is evident from our survey that the Indian consumer has a deep-rooted, savings-centric mentality and approaches financial planning with mindfulness. The trends showcased in the report indicate a promising future for financial security. Taxpayers are now considering both immediate tax benefits and long-term gains from retirement-linked instruments like provident funds, pensions, and insurance. This is in perfect alignment with our 15-year-long mission of helping Indian consumers make more informed financial decisions. This trend is a testament to the continued efforts by government bodies and financial institutions to promote financial literacy, fostering a more resilient and informed financial ecosystem in India”, Sarabvir Singh, President and Joint-Group CEO at PB Fintech said.

The report further reveals that tier-2 and 3 cities that had limited access to financial knowledge are on a recovery path because of their keen, calculation-based involvement in financial planning. 69% in Tier 1 cities chose old regime, 61% chose in Tier 2 and 59% chose in Tier 3