Awareness and perception regarding tax saving instruments among teachers of higher education

Abstract

The study attempted to know the awareness and perception regarding various tax saving instruments available to save the tax to the teachers of higher education. The study conducted to determine the tax-saving investment options which are preferred to save tax and what the factors are considered before making investment decisions. Descriptive statistics used to analyze the data collected through the 347 respondents of the Ghaziabad region. The study found most of the teachers of higher education are availing deduction of fees of their wards under section 80 C. investment in PPF and Life insurance premium are also found most used instruments for availing deduction of 80 C. The teachers of higher education are well aware of the various deductions, reliefs, and rebates available as per the Indian income tax act. They prefer those options of investment which are having low risk, high returns, and full tax benefits. It is also found people are not investing in NPS though there is an option to save extra tax by investing up to Rs. 50,000. That is due to the lack of awareness of NPS. The medical deduction is also underutilized. So, the study recommends to invest in NPS and increase the amount of expenditure on health insurance to reduce the tax liability of the teachers of higher education.