A Study on Taxpayers Perception on New Tax Regime

Abstract

The research titled "A Study on Taxpayers' Perception on New Tax Regime" explores how individuals understand, perceive, and respond to the structural tax changes introduced in India’s Union Budget of February 2025. The new regime aims to simplify taxation by reducing exemptions and standardizing rates. Primary data was collected from 178 respondents across different age groups, professions, and income brackets using a structured questionnaire. Both descriptive statistics and inferential tools such as ANOVA, Chi-Square, and correlation analysis were employed for data interpretation. The results indicate that general awareness of the new tax regime is moderately high, but not significantly influenced by demographics such as age, income, or occupation. Interestingly, younger taxpayers showed a significantly greater willingness to switch to the new system compared to older respondents. Despite moderate recognition, the regime’s acceptance is not uniformly strong across all segments. The study highlights the gap between awareness and actual adoption. To improve the uptake of the new system, the study recommends aggressive awareness campaigns, focused financial literacy programs, and clearer communication of benefits. These findings offer valuable insights for policymakers to enhance tax reform strategies and taxpayer engagement in the long term.