A recent survey conducted by Policybazaar in India reveals that the old tax regime is still favored by 63% of taxpayers, while 37% choose the new regime.
The majority of respondents made their choice based on meticulous calculations. Interestingly, women showed a higher level of financial awareness compared to men. Surprisingly, the 18-30 age group, often associated with short-term investments, opted for the old regime due to the appeal of long-term investments. This trend was also observed in the 18-50 age group, suggesting a shift towards long-term investment strategies. Residents of Tier 2 and 3 cities were not far behind their counterparts in metros, with a majority consciously choosing the old tax regime.
The preferred tax-saving instruments were PPF and life insurance, including ULIPs and traditional policies. Overall, the survey indicates a collective shift towards increased financial awareness and a preference for long-term financial stability in India. The growing popularity of insurance as a tax-saving instrument highlights a changing financial landscape.