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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM56575
Volume:
10 |
2 |
Feb 2026
Pages:
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
The shift in the Indian direct tax system from an incentive-led and tax-saving regime to a simplified regime with lower tax rates indicates a marked shift in the direct tax policy. The Union Budget 2025-26 recognized the new tax regime as the standard regime and provided an increase in the tax-free income limit to ₹12.75 lakh for salaried individuals. The “forced savings” mechanism provided by the 80 C provisions is now gradually being removed. The aim of this paper is to analyze the impact of this shift in the direct tax system on the investment behavior of individuals, such as the shift from traditional “tax savers” to “market-linked assets,” and its subsequent impact on “consumption-led growth.” Scenario-based simulations have been done in the paper to weigh the trade-off in savings vs. disposable income.
KEYWORDS
Publication Date
2/13/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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