Authors: Punam Ekanath Visapute, Dr.Tejaswinee Ingle, Parag Vijay Dusane, Dr.Shekhar Chavan
Abstract: This paper investigates how India's dual Income Tax Regimes-the traditional system with exemptions and the simplified alternative introduced in 2020-affect individual taxpayers' choices, behaviors, and financial outcomes. Drawing on a primary survey of over one hundred respondents from varied demographic and occupational backgrounds, the study explores awareness of each regime, factors driving preference, perceived changes in tax burden, and the role of professional advice. The analysis reveals that regime selection is shaped by a combination of income level, investment habits, and ease of compliance, rather than by slab rates alone. While many taxpayers appreciate the simplicity of the new structure, those with significant deductions continue to value the old system's flexibility. Respondents' uncertainty underscores gaps in financial literacy and the need for clearer guidance. Based on these insights, the paper recommends enhanced comparison tools, targeted educational campaigns, and stronger advisory support to help taxpayers make informed decisions and strengthen voluntary compliance under the dual-regime framework.
