PROFILING TAXATION LITERACY OF SALARIED INDIVIDUALS IN SELECT REGION OF DELHI: AN EMPIRICAL STUDY

Taxation literacy means the level of awareness among the people about the Income Tax Act, 1961, and various laws related to them i.e., Payment of Gratuity Act, 1972, etc. In other terms knowledge of technical jargon used under the Income Tax Act, 1961, and awareness of various kinds of deductions, and exemptions available under the Select Act. Tax planning and management are also to be considered under taxation literacy. The main objective of this study is to determine people's knowledge regarding taxation laws. For this purpose, respondents are to be taken from select regions of Delhi i.e., civil lines. Data will be collected through primary sources mainly questionnaires and analyses by using SPSS and appropriate statistical tools. This study concludes that both financial and taxation literacy are positively correlated with each other. Some factors i.e., age, gender, income, and qualifications are also positively correlated with taxation literacy, which means the higher the qualification, the higher be assessee's taxation literacy. This study also concludes that there is a significant relationship between tax planning and taxation literacy.