IT and ITES Employees not so bothered about Tax Planning

Tax planning is a big business in India and as per a survey of 1,169 salaried individuals from the IT/ITeS segment in the age group of 22-54 years (across the cities of Bangalore, Chennai and Hyderabad):

  • 70% of those surveyed did not have any medical insurance and about 18 per cent only had medical insurance cover provided by their employers
  • 36% of the respondents did not have any kind of life insurance in Hyderabad.
  • more than 60 per cent had not fully utilised the limit of Rs 1 lakh
  • 11 per cent of the respondents in Hyderabad used only Provident Fund (PF) investments, among the various tax saving options available.
  • Only 18 per cent of those surveyed featuring it in their portfolio of tax saving instruments. [source]

Lack of awareness about tax instruments and investment options is where lies a huge opportunity for players in this space.

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