Indian IT employees careless about tax planning
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Indian IT employees careless about tax planning

By SiliconIndia   |   Friday, 30 January 2009, 03:18 Hrs   |    9 Comments
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Chennai: The techies in three major cities - Chennai, Bangalore and Hyderabad are not taking care about financial and tax planning, according to 70 percent of the respondents of the annual tax survey conducted.

The survey conducted by Right Horizons, an investment advisory firm, among 1,169 salaried individuals also finds that 82 percent of the respondents do not have any medical insurance and only 13 percent has medical insurance cover provided by their employees, reported The Times of India. As per the survey, 36 percent of the respondents in Chennai do not have any life insurance policies. 20 percent of the employees use PF investments as it is mandatory in many companies.

"Investments under Section 80C earn tax breaks for investors up to a maximum limit of Rs 1 lakh. Therefore, it comes as a surprise that more than 75 percent of those surveyed had not fully utilized the limit and many of them actually went on to pay income-tax which could have been saved through better financial or tax planning," the survey said.

The study clearly indicates that traditional investments such as PPF, NSC and life Insurance are still dominating in the investment profile with 58 percent of the respondents have these kinds of investments only. The survey also shows that only 35 percent have equity-linked savings scheme (ELSS) in their tax saving portfolio, while 5 percent respondents had more than 50 percent exposure to mutual funds as part of the 80C investments.

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Reader's comments(9)
1: Every major IT company employee gets Medical insurance benefit from their employer. It is not possible for such a huge percentage of employees without medical insurance.
Posted by:prakash - 31 Jan, 2009
2: Indian IT employees...Hope the reference is not to Income Tax employees...If that isnt the case..Like someone said easy come easy go...Let some additional money get in to the government coffers...U nevaknow when the next stimulus package gets released.
Posted by:Sudarshan - 30 Jan, 2009
3: Improper analysis, unnecessary highlighting.
Posted by:Yogendra - 29 Jan, 2009
4: I am an Finicial Advisor in Chennai. As rightly said Most of the IT employees never Bothered about Investments in right mannner.Only lady employees were much smarter than men, they invested in Conventional policies, NSC,Long term Plans.Men Most invested in Shares & mutual funds and lost huge money.Others hae invested in Real estate. Actually investments in Conventional Policies are much safe. Now at lest 5% of IT employess started realsizing it.It is a Good Sign. I only request the IT emloyees to see long term ie future plans, it all ways better.
Posted by:CS Jayasankar - 29 Jan, 2009
You are a Worst Financial Advisor, By your Statements I understood that You are a Insurance Agent and some Lady Employees have taken Insurance from You. So, You are Angry and Posting some Comments here..
Real Financial Advisor Replied to: CS Jayasankar - 26 Nov, 2009
6: Easy come Easy go. Employees IT sector were paid huge salaries hence they never bothered to save money. Now phew.. every penny in the bowl needs to be counted.
Posted by:maya - 29 Jan, 2009
7: I think this survey may not conducted in a proper way. The Indian IT industry employs around 1.1 million professionals. If there was a survey done, I would like to understand what was the sample size taken for the survey and how was the sample size arrived at.

Indian IT industry employs over 1.1 Million professionals. If within these three metros, the share is more than 70%, then that puts the total employed to 770,000 professionals. Unless a sample size of at least 35000 professionals were considered, this survey is of no use.

Just a crap content.
Posted by:critic - 29 Jan, 2009
8: I do not think so
Posted by:deepika - 29 Jan, 2009
9: The IT employees are all the time pricked by the different carelessness.. but this is not only with IT but every working person..
Posted by:sirish - 29 Jan, 2009