REFORMING TAXATION IN INDIA: BEHAVIORAL, FISCAL, AND FINANCIAL IMPLICATIONS OF THE NEW TAX REGIME

The introduction of India's New Tax Regime (NTR) was intended to simplify taxation, reduce rates, and enhance compliance. However, the behavioral, fiscal, and financial implications of this policy remain underexplored. This paper investigates taxpayer awareness, perceptions, attitudes, and financial behavior under the NTR using Structural Equation Modeling (SEM) and Analysis of Variance (ANOVA) on survey-based data (n=50, simulated). SEM results reveal that perceived simplicity and fairness significantly influence attitudes, which in turn drive intention to adopt NTR and changes in saving behavior. ANOVA indicates significant differences across age and income groups in awareness and preference for tax regimes. The findings provide insights for policymakers on how behavioral factors influence fiscal outcomes and financial planning in the context of tax reform.