Awareness Regarding Tax Saving Instruments among Salaried People of Silchar: A Survey

Abstract

Tax is an important element of fiscal policy of Indian economy. It makes up a huge share of government’s treasure used for various developmental activities throughout the country. Out of all the tax types, personal income tax accrues lion share in that treasure. However, nobody wants to share their hard-earned money with anyone. As such paying tax out of the income has always been an issue for all the tax payers, especially the salaried ones. Everyone tries to reduce the tax burden as much as possible. Usually on such circumstances people have three options- tax avoidance, tax evasion or tax planning. Government of India has always been in the process to devise such provisions and schemes so that it can reduce the tax liability in the shoulders of all the tax payers, especially the poor and the middleclass people. This paper mainly discusses the meaning and need for tax planning and tax management, what are the ways in which the salaried class can bring down their respective tax burden, and what are the innovative and latest instruments saving income tax available to the salaried class. Moreover, this paper also addresses the awareness level among the people of Silchar, Cachar, Assam regarding the availability of such valuable tax saving instruments and the extent to which they have availed them.