An Investigation on Alternative Tax Regime and Its Relevance Today

Abstract

Every year, tax laws are updated to offer a more straightforward tax structure to all Indian taxpayers. It was decided to provide individual assesses access to a new optional tax system in the union budget. This essay discusses the new optional tax system, how it compares to the previous tax arrangement, and how relevant optional taxes are in the current context. The purpose of this study is to better understand how taxpayers view optional taxes and to raise taxpayer awareness of the new tax system, the drawbacks of optional taxes, and how they will affect the upcoming fiscal year. In order to provide a more thorough analysis, a variety of research papers and journals are studied and questionnaires are used largely to collect data for this purpose. According to the paper's findings, respondents think that since there are no deductions available under the new tax regime, people will continue to pay taxes under the previous system. Nonetheless, the majority of respondents concurred that the new plan is superior than the old because it is totally dependent on each individuals income and investment level. Overall, it may be concluded that, if the new tax plan few drawbacks are ignored, it represents a positive start toward becoming the most significant tax reform in recent memory.