Factor influencing the tax planning behaviour among the salaried individuals

Authors Details :
Sabir Mujawar

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Indian Economy is the world's 06 th largest economy (2021 Nominal GDP) and 03 rd largest by purchasing power parity (2021 PPP). Salaried workers are a consistent group of tax paying citizens that give roughly 12% of overall revenue to a government through income tax. Due to which tax planning has assumed special importance for salaried individuals. All taxpayers in India have a variety of tax saving choices. These choices provide a variety of exclusions and deductions that help to reduce the total tax burden. Deductions are provided from Sections 80C through 80U, and qualifying taxpayers can claim them. Hence it is essential for the individual tax payer to know all their possible tax regulations and for tax compliance. It is totally legal and, in fact, a wise option when tax planning is done within the boundaries set by the relevant authorities. However the salaried individuals are not able to plan their taxes which results in opting for the wrong investment options. The objective of the study is to determine the level of awareness among the salaried individual on several tax planning methods offered on professional tax under the income tax act and to identify the factors influencing the tax planning behaviour of the salaried individuals..