Tax Planning for Salaried Individuals: A Case Study Approach

Tax planning is a crucial aspect of personal financial management, yet many salaried individuals in India lack awareness of optimal tax-saving strategies. This gap in knowledge often leads to inefficient tax planning, resulting in higher tax liabilities and missed opportunities for financial growth. One of the key challenges faced by taxpayers is the selection between the old and new tax regimes, both of which offer distinct benefits based on individual financial situations. Additionally, the absence of personalized tax guidance further complicates decision-making. This study aims to address these issues by analysing tax-saving investment options tailored to different categories of salaried individuals, considering factors such as life stage, income level, and financial goals. A comparative analysis of the old and new tax regimes is conducted to determine the most advantageous approach for various taxpayer profiles. Through case studies, the research examines practical applications of tax-saving strategies to enhance tax literacy and enable individuals to make informed financial decisions. The study also provides policy recommendations to improve tax awareness and simplify tax planning for salaried employees in India.