Impact of Tax Policies on Financial Planning of Individuals and Businesses in India

Abstract

This research studies how different tax laws affect financial planning activities practised by Indian people as well as businesses. It looks into the various ways in which individual investment and savings decisions are affected by forward looking income tax rates ,deductions from it and exemptions. The effect of business tax rates and benefits on firms growth and investment plans are looked at in this study. This study shows the important ways that tax regulations affect financial decisions through a thorough study of the literature and data analysis The aim of the results is to help financial policymakers and planners better tax strategies and support economic growth. Policy suggestions to improve tax compliance and efficiency in the Indian setting are given in the conclusion of the study.

The paper explores one of the most subtle and complex issues that India is facing; the effects of tax laws on the financial planning activities in India. It comprehensively analyse how specific decisions to invest and save are affected by the expected rates of income taxes, deductions, and exemptions. Further, it investigates the effect of business taxes, taxes rates, and benefits on the firm’s growth and its investment strategies. As a systematic investigation of prior scholarship and data analysis, this study contributes to identifying how extensively tax rules influence such choices. The objective of this research is to provide the relevant financial policymakers and planners with the necessary information to enhance their extant knowledge in formulating efficient tax policies and propelling economic growth. The suggestions made here are policy suggestions which are considered ideal to promote compliance and efficiency in Indian taxation system.