Impact Of The New Tax Regime On Financial Well-Being Of Healthcare Professionals

Abstract

Background: The new tax regime which was first proposed in the union budget of 2020-21 and no changes were brought in the subsequent year. The study tries to explore how the newly introduced taxation system which promised to offer hassle free tax computations, but forfeiting the deductions and exemptions, has impacted the household especially the one which are the machinery of our Indian healthcare system.

Purpose: The study tries to find out how healthcare professionals see the new tax regime, how it effects their financial well-being, while assessing the differences between those who stayed in old tax regime (which provides various exemptions & deductions) and by those who opted for new tax regime (which provides few opportunities in the form of increased basic exemption limit, increased limit of rebate and reduction in surcharge rate).

Methods: The study was conducted by utilizing cross- sectional research method, which involved 400 healthcare professionals from diverse fields including doctors, nursing officers, nursing assistant, clerical staff and other employees. The stratified random sampling method was used to collect data with the help of structured questionnaires. Collected data were analysed using t-tests and regression models, to evaluate the relationships and differences among the variables. The results suggests that healthcare professionals are preferring new tax regime as it is hassle free from the several deductions and offers an easy approach towards financial decisions.

This study underscores the favorable impact of the new tax regime on the financial health of healthcare professionals. The insights gained from this study can inform future financial education initiatives and policy decisions aimed at supporting this essential sector