Today, leading Tax Tech Startup EZTax released Income Tax Filing, Compliance insights and data analytics for the FY 2021-22 tax season.
At the end of every tax season, EZTax does a yearly review to understand tax filing, compliance trends, conduct behaviour analysis, and provide insights. The important data analytics and insights include
- Only 2.1% of individual taxpayers chose the new tax regime for FY 2021–22.
- Taxpayers with zero investments are mostly opting for the new tax regime. The number of taxpayers who will choose the new tax regime is expected to rise in the coming years, as it will increase take-home pay.
- 38% of the taxpayer's behaviour on tax savings investments is slowly moving towards self-control rather than the choices given by the employer or what was in the salary structure.
- Taxpayers who continued their home loans, HRA, and PF as part of their salary structure, are opting for the old tax regime instead of the new tax regime. The effective tax rate under the old tax regime, after all the deductions, is lower than the effective tax rate under the new tax regime.
- Surprisingly, 71% of taxpayers employ no-to-low tax planning and savings strategies.
- Where taxable income exceeds Rs. 5 lakhs, a little tax planning and tax-saving investments can save an average of Rs. 26,740.
- According to the data, taxpayers who began trading during COVID-19 are less inclined to trade and are more focused on investing in soft markets.
- While the number of tax audit cases increased for FY 2021–22, the outlook for FY 2022–23 would be substantially low due to the new way of calculating turnover and the increased trading turnover limit for tax audits, which has gone up to Rs 10 crore.
- 210% increase in inquiries towards tax-saving investments compared to FY 2020-21
- Substantial increase in multi-source income tax filings during FY 2021–22; the most common is freelancing in addition to salary, and the 2nd most common is capital gains or losses from soft markets.
- Taxpayers who report crypto income do not hold any other major stable taxable income, and those who reported losses are concerned about harvesting such losses.
“Due to digital economic activity and the growing number of additional sources of income, taxpayers are advised to consider the tax consultation and advisory services as a proactive measure. Tax filing services at the end of the financial year or close to July month would not yield savings but rather be a mere representation of what choices one has already made,” said Suneel Dasari, Founder and CEO at EZTax.in.
“It’s vital for taxpayers to utilise tax consulting services to optimise taxes during the financial year.”
Suneel further said, “We have been instrumental in building tools, technologies, and methods that are second to none in the country to provide pro-active solutions, such as India’s 1st Tax Optimiser part of free self-service IT Filing Portal.”
More on Tax Consulting Services
Since 2016, EZTax has been assisting taxpayers and has made tax consultation services an integral part of its service offerings, which include income tax, GST, TDS, business advisory, and compliance. Today, we are helping not only the Indian resident taxpayers but also the NRIs located in 37+ countries around the world. To learn more about the consultation service, speak with an EZTax representative via the chat window and engage or take the service, or schedule an appointment directly through the EZTax.in portal.
More about EZTax.in
EZTax, a tax tech start-up, provides comprehensive, end-to-end tax solutions in the areas of income tax, TDS, GST, accounting, and registrations for both individuals and SME businesses through software, apps, and expert services.
Press Release material @ https://eztax.in/press-coverage