2025, Vol. 6, Issue 2, Part A
Exploring determinants of taxpayer adoption of the new income tax regime: A mediation-based empirical analysis
Author(s): Santosh S Chavan, Raju Sanadi and Gourishankar Chigari
Abstract: This study looks at the behavioural elements that determine how taxpayers feel about India's new optional income tax regime under Section 115BAC of the Finance Act, 2020. This study uses the Theory of Planned Behaviour (TPB) to look into how taxpayer attitude affects the acceptance of a new tax regime based on three main factors: the perception of simplicity and clarity, the perception of tax savings, and expert advice. The study looked at 152 salaried workers in Belagavi City, Karnataka, who each made more than ₹5,00,000 a year. The construct's validity was confirmed by Exploratory Factor Analysis (KMO = 0.886; Bartlett's χ² = 2364.217, p< 0.001). Using SmartPLS for Structural Equation Modelling, we found that attitude towards the new regime is a strong predictor of adoption (β = 0.940, t = 31.619, p< 0.001), which then has a big effect on satisfaction (β = 0.923, t = 18.569, p< 0.001). Expert assistance (β = 0.407, t = 4.284), simplicity and clarity (β = 0.389, t = 4.420), and the sense of tax savings (β = 0.198, t = 2.750) had a big effect on attitude. The model explains 86.2% of the change in attitude (R² = 0.862), 88.4% of the change in regime choice (R² = 0.884), and 85.1% of the change in satisfaction (R² = 0.851). The analysis of indirect effects showed that attitude and choice modify the link to satisfaction. The most prominent sequential effect was Attitude → Choice → Satisfaction (β = 0.868). These results strongly support the idea that behavioural insights should be used to create tax policy, especially in semi-urban areas of India.
DOI: 10.22271/27084515.2025.v6.i2a.616
Pages: 50-59 | Views: 670 | Downloads: 149
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How to cite this article:
Santosh S Chavan, Raju Sanadi, Gourishankar Chigari. Exploring determinants of taxpayer adoption of the new income tax regime: A mediation-based empirical analysis. Asian J Manage Commerce 2025;6(2):50-59. DOI: 10.22271/27084515.2025.v6.i2a.616
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