A Study of Investors’ Perception on The Preference Over Tax Savings Options

Abstract

For both salaried and businesspeople, the tax-saving season begins on April 1st. As a wise investor, you should seek out tax-saving assets that not only give tax benefits but also allow you to generate tax-free income. With the plethora of investment options available for investors for tax saving, it becomes increasingly difficult to choose a right option. Tax preparation, on the other hand, is a do-it-later issue for the majority of investors. Tax saving is the legitimate way to save the tax out go and every income tax assesse should exercise the option to increase their wealth. The paper aims to analyse the invertors’ perception towards tax saving options from most popular 80C and 80 (CCD) 1B from Gujarat region. The tax saving options considered are Tax saving fixed deposit, National saving certificates, public provident fund, Tax saving mutual funds, Life insurance, National Pension System (NPS), pension policies and Sukanya Samriddhi Yojana (SSY).  The study revealed that life insurance, PPF and fixed deposit are the most preferred investment options and NPS and SSY are the least preferred options for tax saving.