1. Abstract:

The objective of the study is to study investor’s preference towards various tax saving schemes

(under various sections of Income Tax, Act 1961). The tax saving schemes in which investors

have invested, to identify patterns of investment in tax saving schemes. The methodology of the

study is primary data and secondary data is collected through the sample survey with the help of

questionnaire. Sampling method is the non-probability convenient sampling.

Tax is always a concern for the individuals for more than one reason. Some do not want to give

tax while others want to minimize the amount to be paid. Latter is legal and is referred to as tax

planning.

2. Introduction:

The direct tax which is paid by individual to the central government of India is known as Income

Tax. It is imposed on our income and plays a vital role in the economic growth and stability of

our country.

In case of individual taxation government has offered few schemes in which the investments are

not subjected to tax liability. The objective is to promote investment. On individual behalf it is

Option of choice so as to maximize his benefits in long term and short term and get good returns

from these saving schemes. This study describes individual behavior while selecting various

schemes.

3. Literature Review

Karthikeyan (2001) has conducted research on Small Investors' Perception on Post Office Saving

Schemes and found that there was significant difference among the four age groups, in the level

of awareness for Kisan Vikas Patra (KVP), National Savings Schemes (NSS), and Deposit

Scheme for Retired Employees (DSRE), and the overall score confirmed that the level of

awareness among investors in the old age group was higher than in those of the young age group.

No difference was observed between male and female investors except for the NSS and KVP.

Out of the factors analyzed, necessities of life and tax benefits were the two major ones that

influence the investors both in semi-urban and urban areas. Majority (73.3 per cent) of investors

of both semi-urban and urban areas were very much willing to invest in small savings schemes in

future provided they have more for savings.

As per survey of NCAER July 2011, most preferred saving option of an Indian Housefold was

Commercial Bank, followed by LIC and Post Offices. Pension Plans and Regional banks were

also attracting a good portion of savings.

Similar study was done by Bharathraj Shtty and Prashant Mane, which also showed banks as

preferred options for tax saving schemes and also describes low level of awareness among

investors.

4. Problem Statement:

Following are the objectives of our analysis:

Objective-1: To study investors preferences towards various tax saving schemes

Objective-2: To rank various tax saving instruments on the basis of investor’s preference

Objective-3 To assess the awareness level about tax saving schemes

Objective-4 To assess the proportion of investors based on the nature of expected benefits

Objective-5 To study the ways investors keep themselves updated about tax saving schemes

5. Research methodology:

The type of study is descriptive. Primary data and Secondary data are collected with help of

questionnaire. Sampling method is Non-Probability Convenient Sampling.

Sample size will be of 50-60 people

Tools used will be MS EXCEL and SPSS for presentation and analysis