NEW TAXATION REGIME AND ITS IMPACT ON MIDDLE FINANCIAL GAIN PEOPLE AND THEIR LEVEL OF TAX DESIGNING

Abstract

The purpose of this paper is to research the impact of latest Taxation Regime on middle-income individuals and their level of tax planning/designing in India. Union Budget 2020 had planned an alternate income tax structure that has get result from which from April 1, 2020. In keeping with New Tax Regime (NTR) individual have alternative for paying tax with lower income tax rates by renunciation the tax exemptions/deductions or continues to pay tax underneath the present taxation Regime (PTR) by claiming the applicable exemptions and deductions. The research paper tries to match between NTR & PTR and that choice is best appropriate for them. To measure the impact of NTR on tax planning/designing, paper assumes the tax bracket as dependent variable and tax planning/designing freelance variables. This study counseled that taxpayers ought to showing wisdom underneath each tax regimes. The present study reveals that tax saving would be lower in New system of taxation Regime. The study is expected to assist the government in deciding the longer term course of action towards effective dogmas for reinforcing the amount of saving and investment in an economy.