This document summarizes a study on investor preferences for various tax saving schemes in India. The objectives are to study which tax saving schemes investors have invested in, identify patterns of investment, and assess awareness levels. Previous literature found that banks are the most preferred tax saving option and awareness is generally low. The current study will use questionnaires with non-probability sampling of 50-60 people to analyze preferences across different tax saving instruments, rank them based on preference, and assess how investors stay informed about schemes. Primary and secondary data will be collected and analyzed using Excel and SPSS.

1. 1. Abstract:
The objective of the study is to study investor’s preference towards various tax saving schemes
(under various sections of Income Tax, Act 1961). The tax saving schemes in which investors
have invested, to identify patterns of investment in tax saving schemes. The methodology of the
study is primary data and secondary data is collected through the sample survey with the help of
questionnaire. Sampling method is the non-probability convenient sampling.
Tax is always a concern for the individuals for more than one reason. Some do not want to give
tax while others want to minimize the amount to be paid. Latter is legal and is referred to as tax
planning.
2. Introduction:
The direct tax which is paid by individual to the central government of India is known as Income
Tax. It is imposed on our income and plays a vital role in the economic growth and stability of
our country.
In case of individual taxation government has offered few schemes in which the investments are
not subjected to tax liability. The objective is to promote investment. On individual behalf it is
Option of choice so as to maximize his benefits in long term and short term and get good returns
from these saving schemes. This study describes individual behavior while selecting various
schemes.
3. Literature Review
Karthikeyan (2001) has conducted research on Small Investors' Perception on Post Office Saving
Schemes and found that there was significant difference among the four age groups, in the level
of awareness for Kisan Vikas Patra (KVP), National Savings Schemes (NSS), and Deposit
Scheme for Retired Employees (DSRE), and the overall score confirmed that the level of
awareness among investors in the old age group was higher than in those of the young age group.
No difference was observed between male and female investors except for the NSS and KVP.
Out of the factors analyzed, necessities of life and tax benefits were the two major ones that
influence the investors both in semi-urban and urban areas. Majority (73.3 per cent) of investors
of both semi-urban and urban areas were very much willing to invest in small savings schemes in
future provided they have more for savings.
As per survey of NCAER July 2011, most preferred saving option of an Indian Housefold was
Commercial Bank, followed by LIC and Post Offices. Pension Plans and Regional banks were
also attracting a good portion of savings.

2. Similar study was done by Bharathraj Shtty and Prashant Mane, which also showed banks as
preferred options for tax saving schemes and also describes low level of awareness among
investors.
4. Problem Statement:
Following are the objectives of our analysis:
Objective-1: To study investors preferences towards various tax saving schemes
Objective-2: To rank various tax saving instruments on the basis of investor’s preference
Objective-3 To assess the awareness level about tax saving schemes
Objective-4 To assess the proportion of investors based on the nature of expected benefits
Objective-5 To study the ways investors keep themselves updated about tax saving schemes
5. Researchmethodology:
The type of study is descriptive. Primary data and Secondary data are collected with help of
questionnaire. Sampling method is Non-Probability Convenient Sampling.
Sample size will be of 50-60 people
Tools used will be MS EXCEL and SPSS for presentation and analysis