A Public Perception towards present Income Tax rates with special reference to Tumkur city

International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 136 “A Public Perception towards present Income Tax rates with special reference to Tumkur city" Dr. Prathap B N, Associate Professor, Department of MBA, Shridevi Institute of Engineering and Technology, Tumkur, Karnataka, India ([email protected]) Mr. Niteesh K B, 2 nd Year MBA Student, Department of MBA, Shridevi Institute of Engineering and Technology Tumkur, Karnataka, India ([email protected]) 1. Introduction The Income Tax Act was first introduced in India on July 24, 1860, and later, the Income Tax Act of 1961 took effect on April 1, 1962. All individuals in India who earn an income are International Journal of Research in Management Fields Available online on http://rspublication.com/IJRMF/IJRMF.html ISSN (P) 2577-1876 (O) 2577-4274 ARTICLE INFO ABSTRACT ©2025 RS Publication Paper ID: IJRM6931B9A5A2EC1 Published: 2025-1206 DOI: https://dx.doi.o rg/10.5281/zenod o.17842179 Page No: 136-152 This study explores public opinion on the newly proposed income tax slab rates in India, focusing on how these changes are perceived to affect individuals' financial situations and the level of public awareness about the new tax structure. By analysing responses from different demographic groups, the study identifies which segments are more supportive of the changes and examines their reasons for this support. It also compares views on the new tax slab rates with those on the previous tax structure to offer insights into the public’s perception of the tax policy shift. The findings provide a comprehensive view of public expectations and awareness, illustrating how these changes impact financial behaviour and preferences. The income tax act, implemented nationwide, ensures that higher earners contribute their fair share. The tax system is designed to address illegal earnings and enforce profit taxation according to government regulations, supporting economic growth. Tax revenues are used to fund essential services such as schools, colleges, hospitals, and infrastructure projects, providing benefits through exemptions and deductions, including those under sections 80C and 80CCD. Additionally, the government's tax policies aim to stimulate investment, create jobs, and drive economic development in India. Cite This Paper: Dr. Prathap B N and Mr. Niteesh K B.(2025). "A Public Perception towards present Income Tax rates with special reference to Tumkur city ". INTERNATIONAL JOURNAL OF RESEARCH IN MANAGEMENT (IJRM), vol. 15, no. 6, 2025, pp. 136-152. DOI: https://dx.doi.org/10.5281/zenodo.17842179 International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 137 required to pay income tax. The income tax system consists of different slab rates, with both the old and new regimes having distinct rates. In both regimes, the tax rate increases as an individual's income increases. On the other hand, the Old Tax Regime continues to be an option for taxpayers who wish to avail themselves of various tax-saving exemptions and deductions. Though the tax rates are relatively higher compared to the new regime, individuals can significantly reduce their taxable income by strategically planning their investments, expenses, and insurance premiums. The choice between the two regimes depends on an individual’s income level, investment habits, and financial planning. While the New Regime is ideal for those with fewerdeductions, the Old Regime benefits those who actively invest in tax-saving schemes andhave eligible expenditures. Taxpayers are allowed to evaluate and switch between the regimes each year (except for those with business income), offering flexibility in optimizing their tax liability. Income tax slab rates FY 2024-25 and AY 2025-26 Old regime Slabs Income tax rates 0-300000 Nill 300001-600000 5% 600001-900000 10% 900001-1200000 15% 1200001-1500000 20% Above 1500000 30% New regime Rs. 12,00,001 to Rs. 16,00,000 15% Rs. 16,00,001 to Rs. 20,00,000 20% Rs. 20,00,001 to Rs. 24,00,000 25% Rs. 24,00,001 and above 30% International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 138 2. Research methodology The study utilized primary data collected through questionnaires to evaluate public opinion on the new income tax slab rates. The questionnaires were crafted in line with the study's objectives. Additionally, secondary data from sources such as journals, books, websites, and published papers were incorporated. The survey was conducted via Google Forms, gathering 52 responses. Limitation The information is confined to Tumkur city only. Objectives  To Assess the public Awareness with respect to current Tax Rates.  To know the public opinion with respect to present Income tax rates.  To analyse the impact of Income Tax rates consumption, Investment decision. 3. Literature review 1. Prof. Shankar prasad (2024) This study highlights the advantages and purposes of the tax system and explores methods to reduce income tax rates. To optimize benefits, it emphasizes utilizing tax savings and financial strategies, particularly through tax exemptions and investment patterns. The new tax system supports workers with lower income levels and ensures their safety, while the old tax rate facilitates saving money. 2. Ritwik Garg (2020) The annual budget provides significant benefits to taxpayers and establishes new rules from the government income tax department. This system presents new data, highlighting how individuals choose tax policies based on their investments. It aids in determining the best options between the old and new tax regimes by assessing deductions and income levels. The old tax regime benefits businessmen, investors, and salaried individuals through its various deductions. The 2020 budget included deductions for house rent, children's education, medical International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 139 allowances, and more. Over 38% of people prefer the old tax regime due to its complex hierarchy and numerous deductions and exemptions, which help reduce tax levels. The majority opinion is collected through questionnaires. 3. Ekaspreet K. Rekhi, abhineet Saxena Understanding taxpayers' perceptions of the new income tax structure is crucial. Income tax provides guidelines for the government on tax payments and aims to improve the tax system to bolster economic conditions. Taxes are collected through both direct and indirect means. This research focuses on the importance of understanding taxpayer behaviour and awareness. Tax policies, including investment exemptions and new tax rates, are designed to reduce tax burdens. This study significantly impacts investment decisions, as some respondents feel it does not support economic conditions. Additional information about the new tax system is shared through social media and websites. 4. Dr. Suresh, nikta Choudhary This study analyses the advantages and disadvantages of income tax and the financial year tax rate slabs in the Indian budget. It helps identify illegal earners and ensures that those with higher income and profit pay taxes according to government rules to boost the economy. Tax revenue is utilized to develop schools, colleges, and hospitals. The exemptions in the IT Act benefit individual taxpayers, with significant deductions in sections 80C and 80CCD under the old income tax regime. The government aims to create more jobs and increase income to develop the country. Sources of data:  Primary data  Sample size 52 respondents make up the sample. 5. Data Analysis and Interpretation International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 140 Table No.1 showing the age of the respondents. SL. No Age factor(years) No. of respondents Percentage 1 16-20 8 15.4 2 21-30 43 82.7 3 31-above 1 1.9 Analysis: From the above table can be analysed that 84.5% of the respondents belongs to the age group of the 20-30 years and 12.7%of respondents belongs to the age group of below 20. Graph No.1 showing the age of respondents. Interpretation: From the above graph we interpreted that majority of the respondents belongs to the age group of 21 to 30. And some are belonging to the below 20. Because, tumkur having a majority of youths. Table No.2 showing the Occupation of respondents. SL. No Occupation factors No. of respondents Percentage 1 Employees 6 11.5 2 Students 42 80.8 3 Self employed 2 3.8 4 Others 2 3.8 Age (Years) 50 45 40 35 30 25 20 15 10 5 16 - 20 21 - 30 31 - above International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 141 Analysis: From the above table can be analysed that 80.3% of the people are students and 14.1% are employees. Graph No.2 showing the Occupation of the respondents. Interpretation: From the above graph it can be interpreted that majority of the people are students and only some people are employees. Table No. 3 showing the awareness level of the respondents about income tax slabs. Sl. No Question Yes (frequently) No (frequently) No. of respondents Percentage of Yes Percentage of No 1 Do you aware about the current income tax slabs in India? 40 12 52 76.9 23.1 Analysis: From the table can we analyzed that major of the respondentsis having aware about Occupation 45 40 35 30 25 20 15 10 5 0 Employees Students Self employed Others International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 142 the income tax slab because most of respondents are students and employees. Graph No. 3 showing the awareness level of the respondents about income tax slabs. Interpretation: From the above graph 76.9% of the respondents are aware about the current income tax slabs because of students and employeesare having a habit of upgrading their current affairs but 23.1% of the respondents are not aware of that so we have togive some tax education to them and make some advertising about the tax rates. Table No.4 showing the how the respondents are stay updated on tax policies. Sl. No. Source No. of respondents Percentage 1 News articles 2 3.8 2 Social media 33 63.5 3 Government websites 11 21.2 4 Financial advisors 1 1.9 5 Employer/company briefings 0 0 6 Not interested in tax updates 5 9.6 Analysis:From the above table can be analyzed that 63.5% of the respondents are stay updated Yes No International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 143 on the social media, 21.2% are from government websites, 9.6% are not interestedin tax updates, 3.8% are from news articles and 1.9% are from financial advisors then no one from employer/company briefings. Graph No.4 showing the how the respondents are stay updated on tax policies. Interpretation:From the above graph major of the respondents are stay updated from social media because now a days the impact of social media is very fast and some what authentic so they get knowledge from these sources, and some are got it from the government websites so it shows that they have habit of checking the websites at this generation. Table No. 5 showing, is the current tax structure easy to understand. Sl. No. If current tax structure easy to understand Respondents Percentage 1 Yes 25 49 2 No 13 25.5 3 Somewhat 13 25.5 Analysis:From the above table can be analysedthat 49% of the respondents are saying it is easy 1 2 3 4 5 6 International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 144 to understand the current tax structure, 25.5% of the respondents are saying it is difficult and another 25.5% of the respondents are somewhat okey to understand the current tax structure. Graph No. 5 showing the is the current tax structure easy to understand. Interpretation:From the above graph can be interpretated that majority of the respondents are accepting that current tax structure is easy to understand because they all are actively gaining the knowledge and also, they show interest on tax structure, then some are not understanding and somewhat they understand it is because of their lack of knowledge in it and also their interest level. Table No.6 showing the current income tax rates are SL. No. Factors Respondents Percentage 1 Too high 20 38.5 2 Reasonable 19 36.5 3 Too low 4 7.7 4 No option 9 17.3 Yes No Somewhat International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 151 • Work towards simplifying tax regulations to reduce confusion and communicate the advantages of the new system in a straightforward manner. • Structure the slab rates to include more deductions or incentives, particularly aimed at lower and middle-income earners. • Provide transparent comparisons and user-friendly tools to help taxpayers understand their obligations under both the old and new tax regimes. 8. Conclusion The study exploring public views on the proposed changes to income tax slabs reveals several significant insights. A large number of individuals are concerned about how the new system may impact their financial well-being, especially in terms of disposable income. It also shows a variation in awareness levels, with some taxpayers well-informed and others lacking clarity. Interestingly, support for the new tax regime appears stronger among younger individualsand higher-income groups, likely because they foresee greater benefits under the revised structure. The research highlights a clear division in public opinion, with some favoring the simplicity of the new system, while others lean towards the tax-saving opportunities offered by the older framework. In conclusion, these findings stress the importance of increased awareness efforts and educational outreach to help citizens understand their options and make well-informed financial decisions regarding their tax liabilities. 9. REFERENCES 1. IJSREM (Jain et al., 2025): Awareness and Perception of Tax Reforms Among Small Business Owners and Individuals in India—includes data from Bengaluru, Karnataka and explores public perceptions of direct tax compliance, awareness, and challenges IJSREM. 2. Mangi Lal Jain (2024): In Evaluating Public Perception of Tax Reforms and Their Impact on Economic Growth (survey across multiple states including Gujarat and Tamil Nadu), the study explores how people perceive fairness and economic impact of direct tax reforms in India theeconomicsjournal.com. 3. NIPFP Survey (Suranjali Tandon & R. Kavita Rao, 2017): Explores public attitudes toward filing returns, institutional trust, complexity of process, and perceived purpose of paying taxes across India—offers a baseline for understanding perceptions in Karnataka NIPFP. 4. Tumakuru District Profile (Wikipedia) provides socioeconomic context: Tumkur features a growing middle-class population, rising literacy rates, and substantial direct tax contributions—helpful background for situating tax-related perceptions in the region Wikipedia. International Journal of Research in Management ISSN 2249-5908 Available online on http://www.rspublication.com/ijrm/ijrm_index.htm Volume 15 No. 6, 2025 DOI: 10.5281/zenodo.17842179 Original Article ©2025 RS Publication, [email protected] 152 5. Jain, M.L. (2024). Evaluating public perception of tax reforms... Int. Journal of Finance Manage Econ, 7(2), 385-392. 6. Kiran Kumar, K.S. Gagan Deep, Vandana Kumari & Girish Muthu V. (2025). Awareness and perception of tax reforms among small business owners and individuals in India, IJSREM, CMS Business School, Bengaluru. 7. Tandon, S., & Rao, R.K. (2017). Perceptions of tax compliance in India, NIPFP.