Author(s) :   Dr. Anshuman Magar¹, Shreyash Pandit², Rohit Khandale³, Prasad Jadhav⁴

Abstract : This study examines the awareness, comprehension, and preparedness of Pune’s citizens regarding India’s New Tax Regime, introduced in Budget 2020 and revised in subsequent fiscal policies. With the government’s push for a simplified tax structure—featuring lower rates but fewer exemptions—this research assesses whether taxpayers in Pune, a key urban economic hub, are adequately informed to make optimal choices between the old and new regimes.

Using a mixed-methods approach, the study combines survey data from 180+ respondents (salaried professionals, business owners, and freelancers) with interviews from tax practitioners. Key parameters include awareness of tax slab differentials, understanding of forfeited deductions (e.g., Section 80C, HRA), and reliance on advisory channels (CAs, digital tools). Preliminary findings suggest significant gaps in awareness, particularly among middle-income groups, with misconceptions about long-term savings implications. The study also explores demographic disparities in tax literacy, highlighting the role of age, income level, and education in shaping compliance behavior.

By evaluating Pune’s readiness for this structural shift, the paper contributes to policy discussions on taxpayer education and the efficacy of India’s tax simplification efforts. Recommendations include targeted awareness campaigns, enhanced digital literacy initiatives, and streamlined guidance from the Income Tax Department to improve voluntary compliance and informed decision-making.

Keywords: New Tax Regime, Tax Literacy, Income Tax Compliance, Fiscal Policy, Urban Taxpayers, India.

DOI: 10.61161/ijarcsms.v13i5.7

Pages : 59-69

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