Awareness and Perception of Tax Reforms Among Small Business Owners and Individuals in India

"Awareness and Perception of Tax Reforms Among Small Business Owners and Individuals in India"

Dr. Kiran Kumar M1, K S Gagan Deep2, Vandana Kumari3, Girish Muthu V4,

Assistant Professor – Finance1, MBA Finance Students2,3,4,

Faculty of Management Studies, CMS Business School, Jain (Deemed to be University) Bengaluru, Karnataka, India

kiranm287@gmail.com, gagandeep.fin@gmail.com, Vandana_kumari24@cms.ac.in, girish_muthu24@cms.ac.in.

Abstract:

This study examines the awareness and perception of tax reforms among small business owners and individuals in India, focusing on three key variables: Tax Knowledge (TK), User Opinions on Taxation (UOT), and Compliance & Operational Challenges (COC). Statistical analysis reveals that COC (p = 0.000) is the most influential factor shaping tax perception, followed by TK (p = 0.012), while UOT (p = 0.066) shows no significant impact. The results highlight that the complexity of compliance requirements and frequent policy changes are the primary concerns for taxpayers. Additionally, individuals with greater tax knowledge tend to have a more positive perception of reforms. However, general opinions and media influence appear to have minimal effect. The findings underscore the importance of simplifying tax processes, enhancing awareness programs, and making tax-related information more accessible. Policymakers should prioritize reducing operational burdens and strengthening educational initiatives to improve public engagement with tax reforms. Despite its contributions, the study acknowledges limitations related to sample size and regional coverage, suggesting areas for future research.

Keywords:

Tax Reforms, Compliance Challenges, Tax Knowledge, Perception, Small Business Owners