Examining Awareness Of Income Tax Deductions And E-Filing Of Tax Returns Among Salaried Taxpayers In Chennai City

Abstract

As an Indian citizen, it is important to pay taxes on the income earned. It is considered to be an obligation to any Indian citizen. However, the process of paying taxes can be burdensome, directly impacting individuals' remaining profits. Therefore, many endeavour to minimize their tax liabilities through various means, including evasion, avoidance, or legitimate planning. While evasion is illegal, avoidance is not, and tax planning is considered ethical. In the fiscal year 2022-2023, only 7.4 crores individuals fulfilled their tax obligations. Salaried individuals have their taxes deducted at the source, and often utilize various tax-saving instruments and deductions under Chapter VIA to mitigate their tax liabilities. Timely filing of income tax returns is a fundamental responsibility for taxpayers, yet despite efforts to simplify the tax system, a significant portion of individuals fail to file returns. This study aims to understand the awareness levels among salaried taxpayers in Chennai city regarding tax planning measures available under Chapter VI A of the Income Tax Act. Additionally, it seeks to understand their preferred methods of filing tax returns. This descriptive study involves a sample of 120 respondents selected by the researcher to assess the level of awareness regarding income tax deductions among salaried taxpayers in Chennai City.