MUMBAI: ‘India’s Investment Readiness’ survey, conducted across 350 cities (Tier 1, 2 and 3) which covered 1,263 respondents, shows that 63% continued to opt for the tax regime owing to the tax-saving benefits and a sense of security offered by long-term savings instruments that one can leverage in the former.
This survey was undertaken by Policybazaar.com A press release states that the findings reveal a heartening level of proactiveness as 71% of respondents based their choice on meticulous calculations. Notably, there’s a shift in gender dynamics, with 74% of women calculating tax liability under both regimes, slightly exceeding the 71% of men. A deeper analysis of investment behaviour across gender, region, employment type, and age groups indicate that there is a growing trend of financial prudence across India.
Age-wise, the report indicates a shifting mindset as 62% of respondents in the 18-30 age bracket who would typically be expected to choose short-term investments and gains, opted for the old tax regime citing long-term investments as the reason. In fact, majority of respondents in the 18-50 age group chose the old regime, signalling a growing openness towards long-term investments.
The survey highlighted PPF and life insurance (including ULIP and traditional policies) as the most favoured tax-saving instruments, chosen by 39% and 34% of respondents, respectively. The survey covered an array of tax-saving tools, including ELSS, home loans, NPS, SSY, Tax Saver FD, donations/ charity, SCSS, NSC, Infrastructure Bonds, and education loans, with percentages ranging from 3% to 39%. The emergence of Insurance and PPF as top tax-saving tools reflects a shift rom traditional savings instruments towards diversified investments.
These key findings underscore a collective shift in financial behaviour, with Indian consumers showcasing heightened awareness, prudent decision-making, and a preference for long-term financial stability. The growing popularity of insurance as a preferred tax-saving instrument reflects a nuanced and evolving financial landscape, suggesting a more secure and forward-looking future for India’s investors, states the press release.
