Role of demographic factors in the tax planning of salaried individuals in Imphal east and Imphal west districts of Manipur

This study examines how demographic factors, such as age, income, education, marital status, and occupation, may influence tax planning behavior among salaried people in the Imphal East and Imphal West districts of Manipur. The study used a sample of 200 respondents who were randomly selected. Structured questionnaires were used to gather data, and analyzed using a statistical tool such as SPSS, the Chi-square test, and correlation. The study found that demographic characteristics have a strong impact on tax-saving choices and levels of awareness. Younger individuals tend to use the simplest deductions available to them as they generally have a lower level of financial literacy. The middle-aged and older age groups are generally able to use more extensive tax planning strategies. Greater education generally corresponds with details of planning, while lower education means less complexity. Government employees are also able to pursue deductions because they have a structured salary, whereas private employees appear to have a less structured income, which manifests as inconsistencies in tax behaviors. The study showed that marital status and family size lead to additional extensions to tax strategies, as there may be greater eligibility for deductions. The entire study finishes with a proposed solution to the issue of gaps in levels of awareness about tax planning, by recommending awareness programs that target tax literacy about tax planning in the Imphal district, by creating a more uniform financial planning awareness program.