Majority of young don't claim tax refunds: Survey
New Delhi: Young Indians are not savvy when it comes to tax planning and claiming refunds, a survey has revealed.
Just 27 percent of the young in the age group of 20-34 who file returns claim refund, while this figure is 53 percent for the middle-aged (above 35 years), the survey conducted by online tax return filing portal TaxSpanner has shown.
The average minimum tax paid by 25-year-old taxpayers earning Rs.10-11 lakh a year was 12 percent, while this figure was only six percent for 35-year-old tax payers.
“Younger taxpayers are not very adept at planning their taxes. Many of them are not aware or able to claim the various tax deductions available to them,” chief financial officer of TaxSpanner Sudhir Kaushik said, commenting on the findings.
According to the annual survey titled “India Tax Ratio Report 2013”, the ratio of middle-aged citizens not claiming medical insurance deduction is almost the same as the younger taxpayers.
“This is despite the fact that middle-aged people are more prone to illness and hospitalization,” it said.
The study covered 1.2 lakh taxpayers across the country in different age groups.