DOES INCREASE IN TAX LIMIT IMPACT INVESTMENT BEHAVIOR OF WOMEN SALARIED INVESTORS WITH REFERENCE TO HIGHER SECONDARY TEACHERS

Abstract

Tax policy reforms play an important role in influencing the saving and investment behaviour of salaried individuals. This study aims to examine the impact of the revised tax exemption limit on fund utilization and investment behaviour of women salaried employees. The study is based on primary data collected from 538 higher secondary women teachers working in Bengaluru and Tumkur districts using a structured questionnaire. Reliability analysis confirmed the internal consistency of the instrument with a Cronbach’s alpha value above 0.8. The findings indicate that the earlier tax regime encouraged disciplined savings through investments in instruments such as Public Provident Fund (PPF), Life Insurance policies, National Savings Certificates, pension schemes, and tax-saving fixed deposits, offering returns between 7% and 15%. However, the removal of deduction-based incentives under the new tax regime has reduced the compulsion to save, resulting in a shift toward increased consumption and leisure spending. Although investments in mutual funds and the stock market remain preferred avenues, the overall tendency for tax-driven savings has declined. The study concludes that while the new regime enhances disposable income and simplifies taxation, it may weaken long-term investment behaviour unless supported by stronger financial awareness and planning initiatives.