A PROJECT REPORT ON

A STUDY ON LEVEL OF AWARENESS AND PERCEPTION ABOUT TAX

DEDUCTION AND EXEMPTIONS AVAILABLE TO SALARIED
INDIVIDUALS IN THANE DISTRICT

A Project Submitted to
University of Mumbai for partial completion of the degree of

Master in Commerce (Advanced Accountancy)

Under the Faculty of Commerce

SUBMITTED BY
SWARUPA SUNIL
MALI ROLL NO. 23-
5555

Under the Guidance of

ASST. PROF.NANDITA IYENGAR
DSPM’S K. V. PENDHARKAR COLLEGE OF ART, SCIENCE AND
COMMERCE (AUTONOMOUS), DOMBIVLI (EAST)

ACADEMIC YEAR 2023-2024

1
 DOMBIVLI SHIKSHAN PRASARAK MANDAL’S,
K.V. PENDHARKAR (Autonomous) COLLEGE OF ARTS, SCIENCE AND
COMMERCE, DOMBIVLI (EAST), DIST. THANE

CERTIFICATE

This is to certify that Ms. Swarupa Sunil Mali has worked and duly completed her Project
Work for the degree of Master in Commerce under the Faculty of Commerce in the subject
of Advanced Accountancy and her project is entitled, "A Study on level of awareness and
perception about tax deduction and exemptions available to salaried individuals in
Thane District under my supervision. I further certify that the entire work has been done by
the learner under my guidance and that no part of it has been submitted previously for any
Degree or Diploma of any University. It is her own work and facts reported by her personal
findings and investigations.

ASST. PROF.NANDITA IYENGAR

DATE OF SUBMISSION:
- 02-12-2023

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 DECLARATION BY LEARNER

I the undersigned SWARUPA SUNIL MALI here by, declare that the work embodied in this
project work titled " A Study on level of awareness and perception about tax deduction
and exemptions available to salaried individuals in Thane District " forms my own
contribution to the research work carried out under the guidance of ASSIST.
PROF.NANDITA IYENGAR is a result of my own research work and has not been
previously submitted to any other University for any other Degree/ Diploma to this or any
other University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

SWARUPA SUNIL MALI

(LEARNER)

Certified by
ASSIST. PROF. NANDITA IYENGAR

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal Dr. Kailash R. Jagdeo for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Coordinator Assist. Prof. Pramila Yadav for his moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide Assist. Prof.
Nandita Iyengar whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me
throughout my project.

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CHAPTER – 1 INTRODUCTION

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“Salary is best defined as a fixed payment that is received at pre-determined intervals for providing services
as per the contract between two parties – an employer and an employee.

“As per Income Tax Act, salary comes under the purview of taxation, wherein the liability is calculated
according to applicable slab rates. To understand the concept and applicability of TDS on salary, individuals
should gather information on its computation and deductions.”

“TDS on salary falls under the purview of Section 192 TDS. Under this tax provision, employers are entitled
to deduct tax at source on the salary amount payable to an employee. It is because the salary received from
the employer is categorised as income, and the same attracts a TDS based on the average prevailing rates of
tax.”

“The ITA makes it mandatory for employers to deduct TDS on salary if they pay a salaried income to their
employees. However, such a deduction can only be carried out if the salaried income is more than the
minimum exemption limit.”

“Usually, TDS on the salary section is refundable. However, such a refund is only possible if the amount of
tax deducted is more than an employee’s tax liability. Also, at times, the investment detail declared at a
fiscal year’s beginning is not the same as the investments that were made at its end. Under such a situation,
the TDS amount on salary will be refunded.”

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1. What is Income Tax?

“Income tax is a yearly tax on earnings. The Indian Income Tax Act (Section 4) states that income tax shall
be charged for the corresponding assessment year on every person's total income for the previous year at the
rates specified in the Finance Act. Income tax is direct tax that government levies on the income of its
citizens. The Income Tax Act, 1961, mandates that the central government collect this tax. The government
can change the income slabs and tax rates every year in its Union Budget.”

2. What is TDS ?

“Tax Deducted at Source is the full version of TDS. By using this method, tax will be withheld at the source
and transferred to the deductee if the deductor is required to pay any other individual (the deductee).The
Central Government will get the amount of TDS that was deducted.

Employers deduct tax from your pay before depositing it in your account and deposit it with the government
on your behalf. TDS is for Tax Deduction at Source, and it refers to the practice of subtracting taxes before
making a payment.”

2.1. Concept of TDS :

Concept of TDS

“The conception of TDS was introduced with the end of collecting duty from the veritably source of income.
TDS was enforced with the thing of collecting duty from the source of income. According to this notion, a
person(deductor) who's needed to make a defined payment to another person(deductee) must abate duty at
the source and shoot it to the central government. The deductee whose income duty has been subtracted at
source is entitled to credit for the quantum subtracted on the base of the deductor's Form 26AS or TDS
instrument.

“TDS, or Tax subtracted at Source, is income duty subtracted from plutocrat paid by anyone making
specified payments similar as rent, commission, professional freights, payment, interest, and so on. Generally,
the person entering the plutocrat is needed to pay income duty. still, the government ensures that income
duty is taken in advance from payments made by you through duty taken at source regulations.”

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3. What is Tax Deductions?

Tax Deductions are the sum of money that can be reduced from the total taxable income. To get the net
income of tax payer the deduction amount is the first included in the gross total income and the subtracted
from it. It is kind o concession received by the taxpayers from the income tax department. The tax
deductions also promote investments and savings by a taxpayer.

“Salaried taxpayers make the majority of their money from their jobs. Salaried employees are typically
offered a wage package, or CTC (cost to company). The employer determines whether or not salary income
is taxable. The employer additionally deducts tax (TDS) from their salary. Thus, following the tax deduction,
the monthly salary earnings would be credited.”

Deductions Lowers the person tax liability by reducing the taxable income, Deduction provided as per
Chapter 6 A Section 6. There are some deductions examples are as follows:

 80D deduction is related to premium paid to Medical & Health Insurance.

 80DD Deduction for dependent handicapped & disability like include blindness, loco motor
disability, low vision, mental illness, mental retardation, leprosy-cured, hearing impairment.
 80U Deduction for self handicapped.
 80G Deduction related to Donation toward special cause
 80C Deduction is up to 1,50,000 under any investment etc.
 80TTA Deduction under interest earned from bank.
 80E Deduction under interest paid to education loan

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4. What is Tax Exemption?

“The total rejection of income or deals from taxable calculations is appertained to as duty impunity. Income
duty immunity is granted on specific sources of income rather than on total income. It may also indicate that
you're pure from paying levies on income deduced from that source. Tax immunity is analogous to but not
the same as duty deductions. A duty deduction is a part of taxable income that can be subtracted from
taxation if certain conditions are met, whereas a duty impunity is income that isn’t tested in the first place.”

Here some useful tax exemption for salaried employees:

 HRA Exemption for salaried Individuals

 Leave Travelling Allowance Exemption
 Exemption On Encashment of Leave for salaried employees
 Income Tax Exemptions for Perquisites
 Exemptions for various allowances
 Tax Exemption from Pension Income for Salaried Employees

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5. What is Tax Regime?

Tax governance refers to the set of rules, regulations, and programs established by a government to govern
the collection, assessment, and administration of levies within a particular governance. It encompasses the
entire frame that defines how levies are levied, calculated, reported, and paid by individualities, businesses,
and other realities.

5.1 Old Regime: The Old Regime is the tax system that prevailed before the introduction of the New
Regime. Under this regime there are over 70 exemptions and deductions available, including HRA & LTA
that can reduce your taxable income and lower tax payments.

5.2 New Regime: The New Regime was introduced in Budget 2020 wherein the tax slabs were altered and
taxpayers were offered concessional tax rates. However, those who opt for New Regime cannot claim
several exemptions and deductions such as HRA, LTA, 80C, 80D and more.

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5.3 INCOME TAX SLAB RATES

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5.4 Features & Characteristic of TDS: “The primary reason for developing Tax Deducted at Source
(TDS) was to address the issue of tax evasion. Tax evasion is common and occurs in all societies, social
classes, professions, economic systems, and industries. The degree to which tax evasion occurs is determined
by economic and tax structures, income types, and social attitudes. As a result, the tax authorities expanded
the scope of TDS in order to avoid tax evasion and collect tax from taxpayers quickly and smoothly. TDS
aims to increase revenue collection while lowering collection costs. TDS is a type of direct tax that is
deducted by the person making the payment. As a result, an individual or a company making a payment is
required by the Income Tax Act to deduct Tax at Source. As long as the payment exceeds the tax authority’s
threshold limit. TDS is small in terms of the various incomes covered by it as well as the percentage of tax
collected at the time of payment in India.”

There are some of the features of Tax Deducted at Source:

 It is the responsibility of person making payment to deduct or collect tax at source.

 “These specific set of people responsible for deducting tax at source are required to have a tax
deduction account number.”
 The time for payment of TDS to the government is stipulated by the tax authorities.
 “The tax deductor is responsible for issuing the Certificate of TDS to the taxpayers in prescribed
form and within the specified time period.”
 The deductors responsible for deducting TDS are required to file quarterly statements of TDS return.
 TDS is collected or deducted at specified rates as prescribed by the tax authorities.
 Tax authorities specify the conditions under which less or no tax would be deducted.

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 Statements of TDS are required to be submitted on prescribed forms and within specified time period.
 Penalty or consequences of non-payment or non-compliance too are stipulated by the tax authorities.

5.5 Responsibility of the Deductor :

 “A Tax Deduction Account Number must be obtained by the deductor. This is a ten-digit alpha-
numeric unique identification number that is required to collect TDS from the taxpayer.
ABCD12345E, for example, is a fictitious Tax Deduction Account Number. This number must be
quoted by the deductor in all income tax matters involving TDS.”
 The PAN of the deductee, or the person receiving the payment, must be obtained by the deductor.
 “He or she is required to deduct tax at correct rate in accordance with the rates specified by the tax
authorities.”
 TDS must be deposited on the same day if tax is collected by the government or any other person on
its behalf.
 In cases where TDS is collected by or on behalf of another person, tax must be deposited on or
before the seventh of the following month. TDS, on the other hand, must be deposited by April 30th
for the month of March.

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CHARPTER – 2 RESEARCH METHEOLOGY

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2.1 OBJECTIVES: -

 To Study Individual Preference between the New and Old Tax Regime.
 To Understand the Perception of salaried Individuals about tax deductions & exemptions.
 To ascertain the level of awareness of salary earning Individuals about tax deduction and exemption.

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2.2 HYPOTHESIS: -

 H0 There is no Impact of Higher Education on Awareness Regarding Tax Deductions

 H1 There is an Impact of Higher Education on Awareness Regarding Tax Deductions
 H0 There is no Impact of Age Factor on Awareness regarding TDS Deductions & Exemptions
 H1 There is an Impact of Age Factor on Awareness regarding TDS Deductions & Exemptions

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2.3. Scope & Significance of Study

2.3.1 Scope of the study : -

The study goes into detail about the various tax exemptions and deductions available to salaried individuals.
& also According to Individual salaried person which Regime is beneficial for them. The current study's
scope is limited to the tax payers' measures that have been implemented by the state's salaried income tax
assessors. The study also assesses the magnitude of Employees' understanding of tax laws , investments and
tax benefits measures. Savings practices, Investment pattern, debt repayment, tax planning measures
implemented for the period, and The level of employee awareness of tax laws and tax planning strategies
was investigated evaluated & also Perceptions and Awareness about tax deductions and exemptions of
Individual salaried person.

In India, income tax is a significant source of revenue for the government. But the business class contributes
significantly more than the salaried class. The difference in class is insignificant. Salaried people have a
fixed income and rarely have opportunities to avoid paying taxes. Middle-aged salaried people are extremely
concerned about their future and try to avoid it.Save as much as possible, but it is difficult due to changing
provisions from year to year. The acute problems faced by the salaried class appear to have received little
attention from the government.

The purpose of this study is to discuss various aspects of salary taxation. It will concentrate on the history of
taxation. It will cover the fundamental considerations for tax policy and taxation structure in India. It will
also include personal taxation objectives and characteristics of a good tax system; in the process, it will
reflect on personal taxation reform. It will shed light on the three major factors to consider when designing
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an effective tax system.

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The study will examine the current state of salary taxation in India using available data. It will also address
issues such as the disparity between the salaried and business classes, as well as between private and
government employees.

2.4 Significance of the Study: -

 Identify Awareness in Individuals about TDS in Salary: Tax has become very important part in
present times. The importance of this study is to know How much knowledge do salaried people
have about Tax & how much knowledge does a salaried person have about tax also about Deductions
& Exemptions

 Saving Tax with Deductions: A tax deduction is the most commonly used sort of tax benefit. When
you claim a tax deduction, the amount of your income that is liable for tax is reduced. The amount of
the deduction that you are able to claim is exactly that amount.to your taxable income. Deductions
for tuition and fees are frequently claimed. Medical expenses, charitable contributions, and state
income taxes are also factors to consider. Another advantage of the deduction is that it decreases
income due to the higher tax brackets initially.

 Excluding Income from Tax: An exclusion from tax provides the greatest tax benefit because the
income is never shown on your tax return, and if it is, it is usually reported in another area of your
return. Exclusions effectively make certain types of income tax-free. The overseas earned income
deduction is one of the most significant exclusions accessible to taxpayers. In 2019, for example, the
legislation permits you to exclude up to $105,900 of income earned outside the United States if you
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 spend the majority of the tax year in that nation. Exclusions, unlike deductions, have no limitations or
reductions; you either meet the conditions to exclude the income or you don't.

 Claiming Tax Credits: A tax credit often has more tax-saving potential than a deduction since it
reduces the amount of income tax you owe on a dollar-for-dollar basis rather than simply reducing
the amount of income subject to tax. Tax credits are available for a wide range of expenses that you
may spend during the year, from college tuition to the installation of energy-efficient household
equipment. Regardless of the tax credit, the IRS normally needs you to complete a separate credit-
specific form to document and compute the amount you are entitled to. The amount you're claiming
In contrast, the majority of potential tax deductions do not. Additional forms must be completed by
you.

 Reducing income tax with capital losses: During the year, many taxpayers sell their stocks for less
than they purchased for them. This capital loss can be used to offset any other capital gains you have
during the year. Losing money is never a pleasant experience. However, the one advantage to a loss
is that it may provide you with a tax-reducing benefit.

 TDS Helps in Preventing Tax Evasion: Tax evasion is one of the major issues facing the
Government of India. By allowing tax deduction at Source, the Government of India can prevent tax
evasion and control the tax payments of the taxpayers of India.Tax deduction at source also ensures
transparency between the government of India and the taxpayers of India who pay taxes.
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Transparency ensures there are no irregularities or tax evasion.

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  TDS is a Stable income for the Government of India: “Tax deduction at source is one of the best
and the most stable incomes for the Government of India”. With this, the Government of India
provides us with various basic necessities such as water supply, electricity, law and order, salaries of
government employees, advancement and upgradation of science and technology, etc.

2.5. Limitations of the Study:

 The subject Tax Deduction and Exemption on Salary Income necessitates a thorough understanding
of tax law and has material and time constraints for studying all aspects of it. As a result, the research
has focused on a few key aspects of the study.
 The salaried class may earn money in addition to their fixed monthly salary if they work outside of
office hours or engage in corrupt practices.
 There is some mistrust between the assessing business or professional on one side and the assessing
business or professional on the other.
 The income tax department believes that the business or professional community is primarily
responsible for large-scale tax evasion and unethical tax law interpretation.
 Business or professionals, on the other hand, believe that government spending generates black
money through corruption and malpractice. They believe that the Income Tax Act is being used as a
tool by the government to harass business owners, particularly the search and seizure provisions, in
order to achieve political goals. These points of view have made it difficult for them to provide
accurate information. However, the study is limited to Salary people.

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  The study is limited to provisions relating to the computation of income from salary, rate structure,
tax planning, and government expenditure that are also responsible for tax evasion, and the data
available for this study are collected from different salary classes in respective of any organizations
or companies.
 Although the methodology of interviews and questionnaires yielded valuable information, it is clear
that many controversial points cannot be proved or disproved conclusively on the basis of such data.

2.6. Brief on Some Income Tax Exemptions and Deductions:

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2.6.1. Exemptions in Brief

1. Exemption on House Rent Allowance:

“Expenses incurred by employees on staying in rented accommodations can be claimed for deduction
under the old tax regime. However, the whole amount of HRA cannot be claimed for deduction. The
amount for which deduction can be claimed is the least of the following:

a) Total HRA paid/received by an employee

b) Actual rent paid less 10% of basic salary
c) 50% of the salary for metro cities and 40% of the salary for non-metro cities

Any amount exceeding the limit will be taxable at the prescribed rate.”

2. Exemption on Leave Travel Allowance:

“Leave Travel Allowance provided by the employer to travel for professional work is also taxable
under the Income Tax Act. Deduction on the amount received as LTA can be claimed by the
employees

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 up to the amount of actual expense incurred (bills should be produced) only twice in 4 years. It
doesn’t include any expenses for personal travel.”

Leave Travel Allowance is restricted to:

 It should be domestic travel only.
 Mode of travel should be rail, air, or any other public transport.

3. Exemption on Income from Gratuity:

“At the time of retirement of the employee or when an employee works for 5 continuous years for the
same employer and then resigns, he/she is liable to receive a certain sum of amount from the
employer as gratuity. Gratuity is a financial reward provided by the employer as gratitude towards
their employees. It is calculated on the employee’s last drawn salary and the number of years they
worked. Tax treatment of gratuity is decided according to the employer’s coverage under the
Payment of Gratuity Act.”

4. Exemption on Leave Encashment:

“A certain number of days are provided as leaves by the employer to their employees. When the
employees don’t claim the total number of leaves credited to them in a year, the leaves can be carried
for the next year or can be encashed. The amount received as compensation for the number of days of
leave accumulated is called leave encashment. It is taxable under the provisions of income tax but
there are some conditions when it is exempted for employees.
The full amount of leave encashment is tax-exempt for central and state government employees.” For
non-government employees, the least of the following three is exempt:

a) 10 months average salary preceding retirement or resignation

b) Leave encashment actually received.
c) An amount equal to the salary for the leave earned
d) Amount notified by the government ₹25 lakhs (the limit for leave encashment has been increased
from ₹3lakh to ₹25 lakhs in the Budget 2023)

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5. Exemption on Relocation Allowance:
A Relocation allowance is provided to bear the relocation expenses of the employees moving from one
place to another. Exemptions can be claimed on various expenses incurred including travel costs,
packaging costs, transportation of personal goods, etc. The point to be noted here is that the
amount of actual expense incurred on relocation is liable for exemption and not the total amount
provided as relocation allowance. The remaining excess portion of the relocation allowance not
claimed will be taxable as per the income slab of the taxpayer.

6. Exemption on VRS Received

Before the actual age of retirement (i.e., 60 years), if any employee chooses to voluntarily retire,
some amount of money is received by the employee from the employer on their voluntary retirement.
Under the Golden Handshake Scheme [Section 10 (10C)], the amount received or receivable is
exempted from taxation.

7. Exemption on Pension Income

On the retirement of an employee, many employers pay pensions to their employees. The Pension
can be provided by the employer directly to the employee or can be paid by an organisation from
which an annuity has been purchased by the employer. Up to a certain limit, pension is exempted
from taxation.

8. Exemption on Other Allowances [Section 10 (14)(i)]

“Various other allowances are provided to the employees in an organisation. Here is the list of other
allowances that are exempt under section [Section 10 (14)(i)] upto the actual amount spent on the

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performance of duties in the office:

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 A. Travelling Allowance: Allowance provided to meet the expenses incurred on the cost of travel
for office purposes or on the transfer of duty.
B. Daily Allowance: Any allowance provided by the employer in the name of daily allowance for
the purpose of ordinary daily charges incurred by the employee on account of absence from his
normal place of duty.
C. Conveyance Allowance: Any amount provided to the employees for the purpose of using
conveyance in the performance of duties of the employment.
D. Helper Allowance: Any allowance granted to meet the expenses incurred on a helper only if such
a helper is engaged in performing the duties of the office or employment of profit.
E. Academic Allowance: Any allowance provided for encouraging academic, research, and training
pursuits in educational and research institutions.
F. Uniform Allowance: An amount provided for purchasing and maintaining the uniform in the
office or while performing any duty related to duties of an office or employment of profit.”

2.6.2. Deductions Allowed Under Different Sections of the Income Tax Act 1961:

“Provisions in the Income Tax Act 1961 also provide for various deductions under specified sections.
Deductions can be claimed against Investments, Allowances, etc., which can reduce the taxable amount of
an individual. Here is the list of various options available under different sections mentioned under the
Income Tax Act 1961”:

1. Standard Deduction:
A flat deduction of ₹50,000 to all individuals earning a salary is known as standard deduction. From 2023-
24, it is offered to all individuals opting for the old tax regime as well as the new tax regime.

2. Tax Saving Investment and Expenditure Options Under Section 80C:

A maximum deduction of ₹1,50,000 (including 80CCC and 80 CCD) can be claimed under this section.
Certain investments, saving schemes, and some expenditures are allowed under this section. Some of them
are:
A. Undertake Market Investments:

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  Investments done in Equity Linked Savings Scheme (ELSS)
 Investments done in Post Office Savings Bank (deposits) for 10 years or 15 years
 Investments made to ULIPs (Unit Linked Insurance Plans) of any Mutual Fund
B. Investment in Specific Government Schemes:
 Investments made to any recognised securities or deposits scheme (E.g. National Savings
Scheme)
 Investments made to any notified savings certificate, Unit Linked Savings Certificate (E.g. NSC
VIII)
 Contribution made to the fund set up by the National Housing Scheme
 Contribution made to Employee’s Provident Fund Scheme
 Contribution made to Public Provident Fund
 Contribution made to any recognised provident fund
C. Certain Expenditure:
 Amount paid towards premium of life insurance
 Amount paid towards premium or subscription for deferred annuity for self or immediate family
 Payments against the principal of any housing loan
 Payments towards the tuition fees of any two children’s full-time education in institutes based in
India

2.6.3 Various Deductions Available Under Different Sections:

A. Section 80CCC: Deductions under this section are mainly:

 Payment of premium to any insurance company towards annuity plans.
 Payment of premium for annuity plan of LIC or any other insurer (maximum cap of ₹1,00,000)
Premium paid in those plans must be kept deposited in order to avail a deduction.

B. Section 80CCD: Any contribution made in a pension scheme notified by the central government by the
assesses or the employee comes under this section. The limit under this section is:
 In the case of an employee, 10% of the salary in the previous year.
 10% of gross total income in any other case.
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C. Section 80DDB: In this section, deductions can be claimed on the amount not exceeding ₹40,000 spent
on medical expenses that arise for treatment of a disease or ailment mentioned in Rule 11DD of the Act.
D. Section 80E: Under this section, a claim can be made on the amount paid as interest on loans taken for
the cause of higher education for self or a relative.
E. Section 80EE: Under this section, first-time homeowners can claim a deduction on their taxable income.
Individuals having their first home purchased of value not more than ₹40 Lakh and the loan taken for which
is ₹25 Lakh or less are eligible to claim a deduction under this section.
F. Section 80RRB: Under this section, tax can be saved up to an amount of ₹3,00,000 on receiving any
income by way of royalties or patents registered under the Patents Act, 1970
G. Section 80TTA: Under this section, any income earned through an interest in a savings bank account,
post office, or cooperative society up to ₹10,000 can be claimed for deduction.
H. Section 80U: This section specifically provides a flat deduction on income tax only applied to disabled
people. Up to ₹1,00,000 can be claimed for deduction depending on the severity of the disability.

2.7. Data Collection Instrument, Methodology & Sources of Data:

1. Primary Data:
 Observations

 Questionnaires (N=100)

2. Secondary Data:

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 Previous Research Paper

 Web Sites

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 CHAPTER 3: - REVIEW OF LITERATURE

Jayakumar and Elavarasan (2015), their study on:

“Impact of tax reforms among salaried assesses in Tamilnadan”

This research examines the impact of tax reforms on salaried taxpayers in Tamil Nadu. The purpose of this
research is to determine whether and how tax amendments affect the amount of salaried assesses.
Conveyance on-random sampling was utilized, and 100 taxpayers participated. Were returned and could be
used in the pilot study. This study's data was descriptively analyzed. statistics, the Chi square test, and the
32
Anova test to assess

33
the hypotheses and the significant The association between assessments personal information and the
amount of opinion on tax allowances. Taxpayers are asked to rate their level of agreement with a specific
statement. The five-point Likert scale. This study found that the majority of the evaluations were negative.
View regarding Impact of Tax Reforms made tax system in India.

Vaneeta Rani (2014), her study on:

“Taxation of Income in India: A Study of Post Liberalisation Period”

In order to establish an economically efficient, effective, and equitable direct tax system that will encourage
voluntary compliance and help raise the tax-to-GDP ratio, DTC is attempting to consolidate and amend the
law relating to all direct taxes, including income tax, dividend distribution tax, and wealth tax. The
unification of compliance processes and the unification of all direct taxes under a single code have paved the
path for a single, unified taxpayer reporting system in the future. Concerns over the complicated Income Tax
Act, 1961 framework, which has undergone numerous amendments and is now incomprehensible to the
typical taxpayer, led to the creation of DTC.

The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 was passed in response to the need
for better budgetary procedures, ushering in a period of fiscal consolidation based on fiscal policy guidelines
for the Indian economy. tax reform enacted by the government since 1991 have contributed to the
construction of a structure that is With a larger base and better enforcement, it is straightforward and
depends on moderate tax rates. They have also assisted in redressing structural inequalities in the tax system.
They are lenient toward business in an effort to improve the investment climate and make India compete on
the global stage.

Sury, M. M. (2014)

“Issues in Designing a System of Income Tax”

“Declared that income is viewed as being by far the most appropriate of the several taxability indicators. The
widespread acceptance of income taxes around the globe attests to this. The annual income of various
taxable organizations, primarily businesses, is subject to income tax. Both individuals and businesses. Fiscal
34
authorities, especially in developing nations, must find solutions to a number of problems in order to make
an

35
income tax system compatible with the socio-economic goals of governmental policy. In order to create and
reshape an effective income tax system, this essay explores general policy challenges.”

Sopan Kasinath (2013) “Finance Act, 2013:

A Financial Literacy Input for the Individual Tax Payers”

The upper group of Indian taxpayers pays taxes entirely for the expansion and prosperity of the Indian
economy. One of the ways the government gets money for public welfare is through direct and indirect
taxes. based on the In accordance with the Income Tax Act of 1961, taxpayers are required to claim
deductions of Rs. 100,000 to the tax obligation. Tax avoidance, but not tax evasion, is a way for taxpayers to
lower their tax obligations.

Kamal Pant, Arya A. (2012), his study on:

“Assesses Perception towards Direct Tax Code (DTC)”

The purpose of the New Direct Tax Code, which is replacing the outdated Income Tax Act of 1961 with
effect from the 2012–13 fiscal year, according to him, is to make the Indian tax system more
comprehensible. The 1961 Income Tax Act has become extremely complicated and nearly unreadable to the
average person because to a complex design, a lot of alterations, regular policy changes, and a lot of rulings
that interpreted previously unclear terms differently. This The average tax payer's cost of compliance has
grown due to complexity, but also made it expensive for the government to collect taxes which is entirely
new, provides some tax relief.

Chattopadhyay Saumen and Das-Gupta Arindam (2002), his study on ,

“ The Personal income tax in india : Compliance tax and Compliance behaviour of Taxpayers”

36
There is a mixed effect of compliance fees on compliance. While financial compliance costs—both legal and
illicit—have a detrimental effect on compliance, time compliance costs and third-party costs incurred
through TDS have the reverse effect. Utilizing tax consultants, which raises the financial cost of compliance
and can have a negative impact on compliance. The main policy recommendations Of course, lower filer
compliance costs and less room for avoidance are the results of this study.

Kaushik Rajiv(2012), His Article on ,

“Assessment of Individual Income Tax, Tax Planning and saving in india “

“This Article helps me a lot in my project, In this article He suggested that Any Individual who want to
assess his/her wish to undertake tax planning and savings, they must first determine their total income,
deduct it from other expenses, and change their total income according to the tax table structure in order to
compute their income tax. Refunds are issued if taxes are paid in access from the department of income
taxes. Do the tax audit at the end”

Chawla Chanchal, Jain Vipin, Joshi Anand and Gupta Vinayak(2013),

“A Study of Satisfaction Level & Awareness of Tax-payers towards E-filling of Income Tax Return – with
Reference to Moradabad City”
It demonstrates that current users are happy with the e-filing capabilities, but the majority of individual
taxpayers are unaware of the e-filing processes, thus more needs to be done to raise taxpayers' understanding
of the benefits of filing income taxes electronically.

Matthias Wrede (2014),

“He has discovered that tax planning has boosted Germany's fair tax rate. According to the study, families
with prosocial motivations should pay less in taxes than those without prosocial motivations. The study
demonstrated that taxation should not deter persons motivated by the joy of giving from contributing
37
Individuals who share these motivations contribute significantly more to the social good than those who do
not.

Suchithra and Vidhya (2019),

The purpose of this study is to determine the most appropriate and popular tax saving instrument used to
save tax, as well as the amount saved by utilizing that instrument by assesses in Srikrishnapuram. The
study's overall findings show that the 80C deduction is the most commonly used tax deduction. Saving
instrument, and 80EE is the second most widely used tax saving device. This study was discovered that the
majority of respondents in Srikrishnapuram are aware of tax-saving tools. In addition, It was discovered that
there is no relationship between gender and amount of awareness among individual taxpayers. Respondents
in this study ranked various tax-saving methods in order of priority. The majority of the most often used tax-
saving tool is the deduction under 80C, which ranks first in this category.

Amit Kumar Arora and Pradeep Kumar Garg (2019),

“The study sought to ascertain higher education teachers' awareness and perceptions of various tax-saving
instruments available to them. The study was carried out to determine the tax-saving instrument options that
are available What factors are considered before making instrument decisions in order to save tax? The
research recommends investing in NPS and increasing health-care spending in order to reduce the Higher
education teachers are subject to taxation. According to the findings of the study, respondents believe that
the taxation system is difficult, and they seek the assistance of experts to file their income taxes return”

Ayesha Qadri (2020),

“Purpose of this study is to understand tax, tax planning and tax management and to find out the most
efficient way of getting tax benefits from numerous tax saving instruments. In this research author to
understand that planning and management of our taxes is really important and also try to analyse the best tax
saving instrument among number of tax saving instruments available in the market in order to pay lowest
taxes possible and get maximum benefits. In this study we have seen tax planning and management and why
it is important to do so, we have also seen popular tax saving techniques through which we can fulfil our
long-term goal. From this we understand that it is important to plan taxes in advance and to wisely choose
among tax saving instruments in order to utilize tax benefits completely.”

Dr J.A. Sarvaiya and Dr Rajesh P Ganatra (2019),

38
“This study intends to investigate the attitudes and behaviour of taxpayers regarding the various deductions
allowed under sections 80C–80U of the Income Tax Act, including PPF, LIC premium, PF, FDs, and
National Pension. Interest on home loan, Mediclaim, Rajiv Gandhi Equity Linked Savings Scheme, Interest
on Loans for education, gifts, rent, interest on savings accounts, and so forth. Additionally, the researcher
attempts to Look for any evidence that taxpayers' perceptions of deductions differ significantly. In relation to
their demographic factors, U/s 80C-80U. It has been discovered that taxpayers with their own Those who
work in businesses pay the highest taxes.” The "deduction under section 24-B" is what the taxpayers seek.
“deduction under section 80D" is the least and the greatest. “

Sumitra Devi and Prof. A. Sudhakar (2018),

This paper aims to ascertain the level of awareness and preference regarding tax saving schemes among
female faculty members at Degree Colleges in Hyderabad. It is discovered that there is no statistically
significant mean difference in the employees' awareness of tax-saving schemes based on their employment
status or the kinds of instruments they produce along the percentage of savings. The study found that the
participants possess fundamental understanding and knowing about the different tax-saving options available
under Sections 80C and 80D alone and choosing to invest in Mutual funds because they are both investing
and have the liquidity to meet short- and medium-term goals to achieve their long-term objectives in home
loans.

Krishnamoorthi (2008)

“Awareness level of the salaried class investors towards particular investment, attitude and satisfaction of
investors towards investment and factors motivate the investors for their investments.”

Primary data were used in this investigation. The necessary primary data were obtained from the sample
respondents via a questionnaire and a multi-stage random sampling technique. Statistical tools have been
utilized to analyse the gathered data such as regression, ANOVA, and the Chi-square test. Based on the
results, it is recommended that the Indian government will implement a number of positive measures to the
degree of knowledge that investors in the salaried class have regarding investment opportunities.

39
“Aparna Samudra and Burghate ,(2012)” Her Study on

“Investment behaviour of middle class households.”

This study was based on primary data. Required primary data have been collected from 300 households
through Interview Schedule Such collected data have been analysed with the help of statistical tools like
Percentage, Chi-square test and ANOVA. They found that it is not only the income of the household that has
an immediate bearing on the investment preferences but also the age group to which the head of the
household influences the choice of investment avenue.

Brahmabhatt ,(2012), His Study on ,

“A study to examine the investor behaviour on investment avenues.”

This study was based on primary data. The required data have been collected from 100 sample respondents
through a Structured Questionnaire Such collected data have been analysed with the help of statistical tools
like Percentage, Pearson’s Correlation, Regression and Cluster analysis. They concluded that awareness
level of the investors about investments and investment opportunities are quite high because, Mumbai is a
financial capital of India and the investors in Mumbai are helped by financial portals, financial news
channels, financial newspapers, markets related television shows, expert talks and magazines.

Yogesh Patel and Charul Patel (2012),

“A study to identify the investment perspective of salaried people working in private sector.”

Two types of data were used in this study: primary and secondary. Using a questionnaire and the purposeful
sampling technique, 50 sample respondents provided the necessary primary data. These gathered data have
been examined using statistical instruments such as percentage, Ordering and Association. Based on their
research, they determined that the available such as fixed deposits and post office schemes are not as well-
liked by young people as the they have a lower interest rate than other available investment options.

40
Samreen Lodhi (2014),

“A study on the factors influencing individual investor behaviour in Karachi city”

Primary data were used in this investigation. Using the probability sampling technique and a questionnaire,
60 sample respondents provided the necessary primary data. It's discovered that financial knowledge and
Accounting data reduces information asymmetry for investors and enables investors to put money into high-
risk investments.

Saugat Das and Ritika Jain (2014) , He Conducted study on

“A study to examine the association between various demographic variables and objectives of investment
and to find the most preferred investment avenues among the investor community in the Guwahati city.”

Primary data were used in this investigation. Using an interview schedule and the non-probability convenient
sampling technique, 150 sample respondents provided the necessary primary data. These gathered data have
been examined using SPSS statistical methods such as the Mann-Whitney U test (to determine whether the
factors of the Kruskal-Wallis H test (to determine the significance between the investment and gender) and
factors of investment related to occupation, age, and educational background). They discovered that
demographic factors like age, gender, occupation, and level of education have an crucial part in the choice of
investments.

Aldus Salam and Ummal Kulsun (2002),

He have examined India's savings habits. They discovered that the majority of national savings came from
savings in the household sector. According to the study, the Income growth was ineffective as a tool to affect
the rate of savings. According to the study, advantageous macroeconomic environment would encourage the
significant structural changes, such as financial markets' liberalization, and it is beneficial to raise the
national savings significantly.

41
 Ambirajan (1961),

“He examined the development, administration, structure, and prospects for the corporate income tax in
India under the revised tax legislation. He emphasized that radical tax changes weren't implemented until
after independence. He discovered that the investment structure in corporations was unaffected by the tax
structure for corporations industry. He bemoaned the hefty corporate tax rates in comparison to even the less
developed nations and other developing nations. He came to the conclusion that Reforms to corporate
taxation were desperately needed. “

Jhaveri (1972),

“He examined how tax breaks affected the amount of money received after taxes from various financial
assets that qualified for the breaks. The author used fictitious examples that included presumptive tax rates,
interest rates before taxes, disparities in income and time spent saving. It was discovered that acceptable
financial For taxpayers with high marginal tax rates, assets were more valuable Middle-class and lower-class
taxpayers did not actually benefit from qualifying assets, as well as their preferred shares and units in the
public provident fund, employee provident fund and cumulative time deposit. The writer proposed that
deduction for savings in particular assets should be made in accordance with various scores. It ought to range
from greater than 100% at low levels of at low gross assessable income levels to 40% at high gross
assessable income levels. The author also proposed that income obtained from eligible financial assets be
exempt from taxes be taken away to prevent the discrepancy. “

Suman (1974),

“The impact of personal income tax and corporation tax in India, on savings and investments and the role in
resource mobilization for public sector during the first five years plans”

“He determined the two taxes' regression coefficient, correlation coefficient, and income elasticity.
According to the study, corporate tax revenue collection exceeds even with higher tax rates, the personal
income tax was a major factor in generating public revenue from 1950–1951 to 1966–1967. He has made
clear that insufficient agricultural income taxes, political considerations, and the existence of non-monetary
sector, ineffective tax management, and significant tax The primary flaws in the Indian tax system were
evasion. The investigator observed that the majority of tax evasion occurred in higher income levels. The
researcher recommended accurate assessment, stability, and simplification of tax law by income tax
authorities, with a focus on the collection of outstanding taxes. Moreover, The researcher recommended
implementing the Japanese self- evaluation system in order to stop significant level of tax evasion in the self-
42
employment industry”

43
Jain (1975), He Study on ,

“An empirical study on taxation of income in India since 1939 and discussed the basis of tax liability and
threw light on the history and scope of super tax, excess profit tax, capital gains tax, super tax and sur-tax”

“Additionally, the researcher looked into how special taxable entities like HUF, Partnership Firms, co-ops,
local government, public charities, and faith-based trusts. As the significance of corporation tax continues to
grow, he demonstrated the sharp increase in corporation tax revenue. He mentioned that even with the fact
that agriculture played a significant role in the Indian economy; the revenue from Farming was tax-free. He
talked about the issue of tax avoidance and evasion as well as the reasons, effects, and recommended actions
to address the tax avoidance. The study looked at tax administration as well, but no noteworthy actions were
found recommended by the writer.”

Sundaram and pandit (1979),

“To find out the rationality of existence of tax entity and its impact on equity and the public revenue.”

The author drew attention to the shortcomings in the current framework that treats individuals and H.U.F. as
separate entities. The analysis shows that the government suffered a significant loss as a result of this system
because every tax entity is eligible for a range of exemptions and deductions, which leads to the lowering of
the marginal tax rate. According to the author, these entities ought to be handled as a nuclear family, pay
different taxes, and treat H.U.F. and individuals differently independently. The author made the case that a
new system of recognition would produce an extra sum of roughly ~130 Crore. Additionally, the writer
contended that The tax system is made more equitable by changes. Additionally, the study suggests some
reductions in exemptions and deductions as a rationalization strategy.

Dipankor (2001),

“Examined the relative tax performance of a group of 16 states of India for the period 1986 to 1997.”

The Tax-State Domestic Product (SDP) rate was used to gauge performance, and Quantile Regression was
used for analysis According to the study, states were divided into four groups based on their taxation systems
performance. To start, the states in the southwest region that consistently perform the best including the
lowest performing states, Karnataka, which is the next category of states. The role that during the course

44
of the

45
investigation, neither of these two groups changed. Thirdly, and the Medium-performing states make up the
fourth category.

Pandey (2002),

“He studied the steps the government took to expand the tax base and associated matters. The study found
that the one-by-six plan for mandatory return filing resulted in a rise in the number of assesses because of
return filing. by people whose income was not taxable. It made the department's paperwork heavier and
taxpayers, without making any tax revenue contributions. The investigation also found that taxes From 2.64
in 1991– 1992, buoyancy dropped to 1.67 in 2000–2001. The writer proposed computerization of income
and inclusion of the agriculture sector in the tax system Tax Department, national networking of all income
tax offices, and targeted application of operations involving search and seizure and creating a welcoming
environment by Income Tax Department in charge of expanding the tax base. “

Arora R.S. and Kumar (2005),

“He sought to examine the effectiveness of the Income Tax Department over a ten-year period, from 1991–
1992 to 2001–2002, using secondary data gathered from reports of the Comptroller and Audit General of
India. The study showed that while tax revenue and the number of assessees increased, the cost of Over the
course of the study, collection decreased. Moreover, the amount of unfinished assessments,The amount of
unfulfilled refund claims and assessment errors rose significantly. The study placed a strong emphasis on
increasing income tax efficiency Department and recommended hiring tax officers, providing them with the
necessary training, outsourcing of repetitive tasks, streamlining tax laws, and implementing technology
based on computers.

Kumar (2006) ,

He has used the Stochastic Frontier Analysis method to investigate the revenue efficiency of income tax in
17 Indian states. The study's time frame is 1989–1990–2000–2001. According to the study, Karnataka
demonstrated the highest Following revenue efficiency is Punjab. Uttar Pradesh and Bihar were least
productively, with the state of Arunachal Pradesh coming in front. And it was discovered that the rankings of
the various states in terms of revenue efficiency stayed consistent throughout the course of the study,
suggesting that underperforming states displayed no progress during the course of the study. The study noted
that a high income tax Revenue from income taxes was negatively impacted by rates and the exemption cap.

46
Tax revenues were positively impacted by personal income and the tax base, nevertheless. Author of the
theory that suggests simplifying tax laws and conducting extensive audits for the wealthier segments of
society Good governance and the implementation of reasonable tax rates were necessary for raising the
efficiency of revenue.

CHAPTER.05: - DATA ANYALYSIS & INTERPRETATION

40
1 GENDER OF THE RESPONDENTS:

Sr. No. Options Respondents Percentage

1 Male 45% 45%

2 Female 55% 55%

3 Others 0 0

41
INTERPRETATION: The Above pie chart illustrates the gender of the employees. All the three
genders have mentioned here. Roughly, 55% of males have responded , Followed by females around
45% and no one respondents for others.

2. AGE OF THE RESPONDENTS: -

Sr. No. Options Respondents Percentage

1 Below 25 Years 51 51%

2 25 to 35 Years 36 36%

3 36 to 45 Years 9 9%

4 45 to 60 Years 4 4%

42
 AGE

4%
9%

51%

36%

Below 25 Years 25 to 35 years 36 to 45 Years 46 to 60 years

INTERPRETATION: The above pie chart gives us the date about the age group of the respondents. I
targeted almost all age groups from below 25 years up to 46 TO 60 Years. It has been observed that the
response received is mostly from below 25 years age group (51%) to 25 – 35 years of age group (36%).
Followed by 9% of 36 – 45year age group. There was only 4 respondent who fall under the age group of 46
to 60 years.

3. RANGE OF FAMILY INCOME OF RESPONDENT:

Sr. No. Options Respondents Percentage

1 Less than 3 Lakh 28 28%

2 3 Lakh to 6 Lakh 37 37%

3 6 Lakh to 8 Lakh 14 14%

4 8 Lakh to 10 Lakh 8 8%

43
 5 Above 10 Lakh 13 13%

FAMILY INCOME OF RESPONDENTS

40

35 37
30

25 28

20

15
14 13
10

5 8

0
Less than 3 Lakh to 6 Lakh to 8 Lakh to Above 10
3 Lakh 6 Lakh 8 Lakh 10 Lakh Lakh

Series 1

INTERPRETATION: The above Bar Graph gives us the data about the Family Income of the respondents.
I targeted almost all Group of family income from Less than 3 Lakh to More than 10 Lakh. It has been
observed that the response received is mostly from 3Lakh to 6 Lakh (37%) & Less than 3 Lakh (28%).
Followed by 14% of 6 – 8Lakh group & 13% above 10 Lakh group. There was only 8 respondent who fall
under the 8- 10Lakh Family Income Group.

3. EDUCATIONAL QUALIFICATION OF RESPONDENTS

Sr. No. Options Respondents Percentage

Graduate (BCOM, BA,
1 BFM , BMS,BSC) 49 49%

2 CA FINAL 3 3%

3 SSC, HSC, DIPLOMA 16 16%

4 LLB 4 4%

44
 Masters (MCOM, MSC,
5 MBA) 27 27%

6 PHD (MBA) 1 1%

EDUCATIONAL QUALIFICATION
1%

27%

49%

4%

16%
3%

Graduate (BCOM, BA, BFM , BMS,BSC) CA FINAL

SSC, HSC, DIPLOMA LLB
Masters (MCOM, MSC, MBA) PHD (MBA)

INTERPRETATION: The above Pie Chart gives us the data about the Educational Qualification of the
respondents. There is 100 respondents Education Qualification Where., 49% Respondents Is graduated with
different streams. 16% Respondents is clear with SSC, HSC & Diploma & 27% Respondent completed their
Master’s Degree. 3% clear LLB & 4% are in CA Final. There is one respondent whose Education is highest
i.e. PHD MBA.

45
5. OCCUPATION

Sr. No. Options Respondents Percentage

1 Student 35 35%

2 Business 8 8%

3 Professional 5 5%

4 Govt. Employed 4 4%

5 Employed 48 48%

OCCUPATION OF RESPONDENTS

INTERPRETATION: The above clustered chart represents Occupation of the respondents i.e., there are
about 35% of Student and 8% of the Businessman & 4% fall under government employee and the remaining
5 % of the Professional respondents & 48% of student some of them doing part time / internship. Hence, it
stated that most of the respondents were Private employee.

46
6. MARRITAL STATUS OF REPONDENTS:

Sr. No. Options Respondents Percentage

1 Married 70 70%

2 Unmarried 30 30%

3 Transgender 0 0

MARRITIAL STATUS
Married Unmarried Transgender

0%

30%

70%

INTERPRETATION: The above clustered chart represents Marital Status of the respondents i.e., there are
about 70% of Respondents are Married and 30% of Respondents Unmarried.

47
6. TOTAL MEMBERS IN FAMILY :

Sr. No. Options Respondents Percentage

1 2-3 22 22%

2 4-5 67 67%

3 6 11 11%

TOTAL MEMBERS IN
FAMILY

4.0-5.0

2.0-3.0

0% 10% 20% 30% 40% 50% 60% 70%

Series 1

INTERPRETATION: The above Bar Graph represents Totals Members in Family of the respondents i.e.,
there are about 2-3 number of family members of 22% Respondents and 67 Respondents have 4 to 5 family
members & 11% Respondents have 6 members in their family.

48
7. NUMBER OF DEPENDENTS IN FAMILY:

Sr. No. Options Respondents Percentage

1 0 12 12%

2 1 18 18%

3 2 41 41%

4 3 26 26%

5 4 3 3%

NUMBER OF DEPENDENTS IN FAMILY

0 1 2 3 4

3% 12%

26%
18%

41%

INTERPRETATION:

There are No Dependent member in 12% of respondents & 1 member is dependent in 18% Respondents. 2
Members are dependent in 41% of respondents & 3 Members are dependent of 26 Respondents , 4 Members
are dependent of 3 Respondents.

8. ACCORDING TO YOU HOW EASY/HARD PROCESS OF INCOME TAX FILING?

49
Sr. No. Options Respondents Percentage

1 Easy 27 27%

2 Neutral 56 56%

3 Hard 8 8%

4 Very Hard 9 9%

HOW EASY/HARD PROCESS OF INCOME TAX FILING

Easy Neutral Hard Very Hard

9%

8% 27%

56%

50
9. ARE YOU REGULAR TAX PAYER ?

Sr. No. Options Respondents Percentage

1 YES 61 61%

2 NO 39 39%

ARE YOU REGULAR TAX PAYER

10. HOW MUCH TAX DO YOU PAY EACH YEAR? (APPROX)

51
 Sr. No. Options Respondents Percentage

1 0 47 47%

2 Below 30000 33 33%

3 30000-50000 8 8%

4 50000-70000 2 2%

5 70000-100000 5 5%

6 Above 100000 5 5%

How much Tax do you pay each

year
(Approx)
5%
5%
2%
8%

47%

33%

0 Below 30000 30000-50000 50000-70000 70000-100000 Above 100000

INTERPRETATION:

The above clustered chart represents Occupation of the respondents i.e., there are about 47% Respondent
pay 0 tax and 33% of the Respondents pay tax below 30000 & 8% respondents pay 30000 to 50000 tax and
the remaining 2 % pay 50000 to 70000 tax & 5% respondents pay 70000 to 100000 & 5% respondents pays
above 100000 Tax. Higher income salaried person come under Higher Taxation.

11. RATE YOUR KNOWLEDGE ABOUT TAX DEDUCTIONS?

52
 Sr. No. Options Respondents Percentage

1 Good 42 42%

2 Average 50 50%

3 Poor 6 6%

4 Excellent 2 2%

Rate your knowledge about tax Deductions

INTERPRETATION:

The above clustered chart represents Knowledge about Tax Deductions i.e., In my Survey, 42%
Respondents have Good Knowledge of Tax deductions , 50% Respondents have Average Knowledge about
Tax deductions & 6% Respondents have Poor Knowledge about Tax deductions and Remaining 2%
respondents have Excellent knowledge about tax deductions.

53
 12. RATE YOUR KNOWLEDGE ABOUT TAX EXEMPTIONS.

Sr. No. Options Respondents Percentage

1 Good 39 39%

2 Average 47 47%

3 Poor 12 12%

4 Excellent 2 2%

Rate your Knowledge about Tax Exemptions.

INTERPRETATION:

The above clustered chart represents Knowledge about Tax Exemptions i.e., In my Survey, 39%
Respondents have Good Knowledge of Tax Exemptions , 47% Respondents have Average Knowledge about
Tax Exemptions & 12% Respondents have Poor Knowledge about Tax Exemptions and Remaining 2%
respondents have Excellent knowledge about tax Exemptions.

54
13. DO YOU KNOW ABOUT INVESTMENTS ?

Sr. No. Options Respondents Percentage

1 YES 87 87%

2 NO 9 9%

3 MAYBE 4 4%

Do you know about Investments ?

INTERPRETATION:

The above clustered chart represents Knowledge about Investments i.e., In my Survey, 87% Respondents
known about Investments, 9% Respondents have don’t know about Investments & 4% Respondents have
little bit knowledge about Investments.

55
14. IF YES THEN WHAT THE OPTION YOU INVEST IN?

Sr. No. Options Respondents Percentage

1 FD 24 24%
2 LIC 35 35%
3 PPF 12 12%
4 NOT APPLICABLE 16 16%
5 SHARES 2 2%
6 SIP 2 2%
7 MUTUAL FUND 4 4%
8 ELSS,NPS 1 1%
9 GOLD 1 1%
10 STOCK MARKET 2 2%
11 LIQUID FUND 1 1%

If yes then what the option you invest in

Sales

FD LIC PPF NOT APPLICABLE

SHARES SIP MUTUAL FUND ELSS,NPS
GOLD STOCK MARKET LIQUID FUND

56
15. DO YOU PLAN FOR REDUCING TAX LIABILITY?

Sr. No. Options Respondents Percentage

1 YES 42 42%

2 NO 35 35%

3 MAYBE 23 23%

Do you plan for reducing Tax Liability

57
16. DO YOU THINK INCOME TAX POLICIES ARE BENEFICIAL TO SALARIED INDIVIDUAL.

Sr. No. Options Respondents Percentage

1 YES 57 57%

2 NO 21 21%

3 MAYBE 22 22%

Do you think income tax policies are beneficial to Salaried Individual.

58
17. CHOOSE ONE DEDUCTION SECTION YOU AWARE MOST?

Sr. No. Options Respondents Percentage

1 80C 52 52%

2 80D 26 26%

3 80E 9 9%

4 80G 13 13%

59
18. WHAT TYPE REGIME YOU PREFER YOURSELF?

Sr. No. Options Respondents Percentage

1 NEW REGIME 48 48%

2 OLD REGIME 52 52%

INTERPRETATION:

60
The above clustered chart represents about Type Regime they prefer i.e., In my Survey, 48% Respondents
have prefer New Regime & 52% Respondents prefer old Regime.

19 WHAT YOU THINK WHICH REGIME IS MOST PREFERABLE FOR TAX SAVING ?

Sr. No. Options Respondents Percentage

1 NEW REGIME 41 41%

2 OLD REGIME 59 59%

INTERPRETATION:

61
The above clustered chart represents about Type Regime Preference i.e., In my Survey, 41% Respondents
have prefer New Regime & 59% Respondents prefer old Regime, In new regime investments exemption not
allowed that’s why most individuals prefer old regime for tax saving.

20. DO YOU THINK MORE EXEMPTIONS SHOULD BE ADDED TO THE

EXISTING EXEMPTIONS?

Sr. No. Options Respondents Percentage

1 YES 57 57%

2 NO 12 12%

3 MAYBE 31 31%

Do you think more exemptions should be added to the existing exemptions?

62
21. DO YOU PLAN INVESTMENT AND EXPENSES ACCORDING TO YOUR TAX LIABILITY?

Sr. No. Options Respondents Percentage

1 YES 62 62%

2 NO 20 20%

3 MAYBE 18 18%

Do you plan investment and expenses according to your tax liability?

63
22. SINCE HOW MANY YEARS YOU'RE DOING TAX ASSESSMENT?

Sr. No. Options Respondents Percentage

1 Less than 2 Years 52 52%

2 2-5 Years 34 34%

3 5-10 Years 6 6%

4 More than 9 9%
10 Years

Since how many years you're doing tax assessment?

64
23. DO YOU AWARE ABOUT STANDARD DEDUCTION ?

Sr. No. Options Respondents Percentage

1 YES 62 62%

2 NO 20 20%

3 MAYBE 18 18%

Do you aware about standard deduction ?

65
24. IF YES WHAT IS STANDARD FOR SALARIED PERSON?

Sr. No. Options Respondents Percentage

1 50000 84 84%

2 100000 12 12%

3 250000 2 2%

4 NA 2 2%

66
 If yes what is standard for salaried person?

WHAT IS STANDARD FOR SALARIED PERSON

50000 100000 250000 NA

2%
12%

86%

25. ARE YOU AWARE ABOUT NATIONAL PENSION SCHEME UNDER 80CCD

Sr. No. Options Respondents Percentage

1 YES 62 62%

2 NO 20 20%

3 MAYBE 18 18%

Are you aware about national pension scheme under 80CCD

67
26. DO YOU AWARE ABOUT LEAVE TRAVELLING ALLOWANCE EXEMPTION

Sr. No. Options Respondents Percentage

1 YES 51 51%

2 NO 39 39%

3 MAYBE 10 10%

Do you aware about Leave Travelling Allowance exemption

68
27. RATE YOUR KNOWLEDGE ABOUT HRA EXEMPTION

Sr. No. Options Respondents Percentage

1 Good 49 49%

2 Average 45 45%

4 Excellent 6 6%

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 Rate your knowledge about HRA Exemption

28. DO YOU AWARE ABOUT EDUCATION CESS?

Sr. No. Options Respondents Percentage

1 YES 63 63%

2 NO 24 24%

3 MAYBE 13 13%

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 Do you aware about Education cess?

Hypothesis Testing 1:

Hypothesis Null-
There is no Impact of Higher Education on Awareness Regarding Tax Deductions.

Alternate Hypothesis-
There is an Impact of Higher Education on Awareness Regarding Tax Deductions.

1) Table:

Particular Educational Qualification of Respondents Good Average Poor Excellent

Graduate (BCOM, BA, BFM , BMS,BSC) 18 30 1
CA FINAL 2
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 Rate your SSC, HSC, DIPLOMA 9 6 2
knowledge LLB 1 2 1
about Tax Masters (MCOM, MSC, MBA) 12 12 2 1
Deductions PHD (MBA) 1
Total 42 50 6 2
Grand Total 100

 Here we are talking about the level of Perception and Awareness about Tax Deductions and
Exemptions available to salaried person.
 It is clarifying that majority people are aware about tax deductions. As per above classification and
according to survey highly educated people are mostly aware about tax deductions
 It demonstrates that highly educated individuals having Good or Average knowledge about Tax
deductions. Mostly who completed their Masters having good or average knowledge about Tax
deduction.

As per Classification of data we found it, the highly educated people are aware about Tax deductions.
As per data, Alternative hypothesis - There is an Impact of Higher Education on Awareness
Regarding Tax Deductions. It proved correct.

Hypothesis Testing 2:

Hypothesis Null:
There is no Impact of Age Factor on Awareness regarding TDS Deductions & Exemptions

Alternative Hypothesis:
There is an Impact of Age Factor on Awareness regarding TDS Deductions & Exemptions

Age Factor Knowledge About Tax Deductions Knowledge About Tax Exemptions

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 Good Average Poor Excellent Good Average Poor Excellent
20 26 4 1 13 29 8 1
Below 25 Years

16 18 2 0 17 15 4 0
25 to 35 Years

3 5 0 1 5 3 1 0
36 to 45 Years

3 1 0 0 4 0 0 0
45 to 60 Years

Total 42 50 6 2 39 47 13 1

Grand Total 100 100

 This Hypothesis is about the level of Perception and Awareness about Tax Deductions and
Exemptions available to salaried person.
 It is clarifying that majority people having Average knowledge about tax deductions & exemptions.
As per above classification and according to survey There is a impact of Age Factor on awareness
about tax deductions & exemptions

As per Classification of data we found it, above people whose age above 25 are more aware about Tax
deductions and exemptions. Higher age people having good or average knowledge about tax
deductions and exemptions. as per data, Alternative hypothesis - There is an Impact of Age Factor on
Awareness regarding TDS Deductions & Exemptions. It proved correct.

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 CHAPTER 6: - CONCLUSION, SUGGESTION & ANNEXURE

CONCLUSION: -

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  In summary, the goals that were established have been accomplished following the acquisition of
primary and secondary data.
 According to study we got satisfying result. We find out Awareness and perception about Tax
deduction and exemptions.
 We have seen that there are various deductions & exemptions available to an individual under the
Income Tax Act, 1961.
 These should not exceed the gross total income and for claiming each a set of conditions need to be
fulfilled.
 In survey we got point many individuals want to add more exemptions.
 The law is pretty clear on deductions & exemptions and there is not much scope for interpretation.
 Earners on salaries can easily deduct taxes, but they must abide by strict guidelines.
 Salary earners benefit from allowances and tax deductions because they reduce their need to pay taxes.
 A wide range of tax exemptions and deductions are available to salary earners who have undergone
extensive analysis.

SUGGESTIONS: -

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 The most important reading the study on level of Perception & Awareness about Tax Deductions &
Exemptions Available to salaried individual will enhance the knowledge about TDS & it will help us
how we reduce our tax & how we invest.

 According to the survey, that individuals demand more exemptions should be added to the existing
exemptions

 According to the survey, most of individual suggest and prefer Old regime because old regime offers
more exemptions and deductions, allowing for greater tax planning and savings

 Investing in PPF is a good way to reduce the TDS deduction on salary. This is a governmental plan
that lets you save small amounts of money and also offer returns on them. It also helps you claim tax
deduction under section 80C.

 Child plan is also suggested to make save the tax.

 To get maximum tax exemptions you can buy a health insurance policy or Life insurance policy ,
Investing in mutual funds also help to reduce Tax.

 Government should increase Awareness regarding PPF and facilitate it’s use for individuals
working in unorganised sector also.

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 ANNEXURE

Questionnaire

To be filled by Salaried Individual & Students who are working

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Your answer

Your answer

Your answer

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 Other:

Your answer

Your answer

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Your answer

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Other:

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CHAPTER 7: - Bibliography

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1. www.wikipedia.org/

2. https://scholar.google.com/

3. http://shodhganga.inflibnet.ac.in:8080/jspui/subject-search

4. https://cleartax.in/

5. https://taxguru.in/

6. http://www.moneycontrol.com/tax/salaries/what-is-gratuity_665038.html?classic=true

7. https://taxguru.in/income-tax/allowances-exemptions-categories-tax- payers.html

8. https://life.futuregenerali.in/tax-hacks/allowances.html

9. https://www.lawyersclubindia.com/articles/Research-paper-on- Analysis-of-important-deductions-available-

to-an-individual-under- Income-Tax-Act-3422.asp

10. https://m.economictimes.com/wealth/tax/10-salary-components-that- can-help-employees-reduce-tax-

burden/articleshow/70259461.cm

11. Jayakumar and Elavarasan (2015), their study on:“Impact of tax reforms among salaried assesses

in Tamilnadan”

12. Vaneeta Rani (2014), her study on:“Taxation of Income in India: A Study of Post Liberalisation Period”

13. Sury, M. M. (2014) “Issues in Designing a System of Income Tax”

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CHAPTER 7: - PLAGAIRISM REPORT

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