Many middle-class people are inadequately prepared for their financial future, especially since certain tax norms seem to adversely impact their quantum of savings, says a survey by News Corp-owned BigDecisions.com.
The personal finance advisory platform also said that around 90 per cent of the middle-class people surveyed are not able to benefit adequately from IT deductions under Section 80C of the Income-Tax Act.
The findings are based on a survey by BigDecisions.com that covered around 46,000 users of its tax planning calculator over the last nine months. The annual income of these users ranged from Rs 2.5 lakh to Rs 1 crore.
“Our data has indicated that a significant chunk of India’s middle class is grossly inadequately prepared for its financial future. Archaic tax laws have been hindering their quantum of savings,” Manish Shah, CoFounder and CEO, BigDecisions.com, said in a release.
With investments in provident fund, life insurance, ELSS and home loan principal repayment vying for the same deduction of Rs 1.5 lakh under Sec 80C, middle-class consumers are not in a position to benefit meaningfully, he added.