Clear (formerly ClearTax), an online tax filing platform, has released a trend report, providing a comprehensive comparison of income tax return filings between the Old Regime and New Regime. The report indicated a notable shift in taxpayer preference, with 15% of individuals choosing the New Regime whereas 85% still opting for the Old Regime.
The disparity between the two highlights a growing interest in the New Regime and its potential benefits over the traditional system.
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The report offered intriguing insights into the tax preferences among Indian taxpayers, shedding light on the changing landscape of income tax filing. With Some of the key findings were:
1. Gender and age-wise split of filers
Among the total number of taxpayers filing ITR on Clear, 70% were male and 30% were women. However, the report highlighted distinct tax filing patterns among various age groups. Filers aged between 31 and 40 years constitute the largest share at 50%, followed by individuals up to 30 years old at 28%. Taxpayers between 41 and 50 years make up 16%, while those above 50 years account for 7%. These insights provide valuable guidance for tax planning and strategies for different age brackets.
2. Utilisation of 80C Deductions (Old Regime Exclusive)
Within the Old Regime, 80C deductions prove to be significant, with 55% of taxpayers fully utilising this benefit, 17% utilising benefits up to Rs 50,000 and 10% utilising benefits between Rs 1L - Rs 1.5L. Surprisingly, 10% of individuals have not taken advantage of this provision, indicating the need for increased awareness and education about tax-saving options.
3. Popular Tax Deductions
Among the available tax deductions, 50% of users claimed 80D for tax deductions on medical insurance, while 20% utilised 80CCD(1B) for tax deductions on NPS self-contributions. These figures emphasise the importance of health and retirement planning among Indian taxpayers and showcase their preferences in tax-saving investments.
Clear added that its services are reflected in the report, with an average time of 7.93 seconds taken to parse the Capital Gains report and populate the details. This quick processing ensures a seamless experience for the users, reducing the time and effort required for tax filing.
Archit Gupta, Founder and CEO, Clear, said, “We are thrilled to present these insights and trends derived from our vast user data. It showcases the evolving tax landscape in India where the New Regime is slowly taking the spotlight, along with a heightened focus on tax-saving opportunities. At Clear, we remain steadfast in our mission to empower every Indian taxpayer with seamless and user-friendly tax filing experiences and this report reflects our dedication to empowering every Indian taxpayer.”
