Income Structure, Savings Pattern and Tax Compliance Behaviour among IT Employees

Abstract

The study examines the income structure, savings pattern, and tax compliance behaviour among IT employees in Thiruvarur City, emphasizing the growing importance of financial planning and responsible tax practices among salaried professionals. The primary objective is to analyse the socio-economic profile and income structure of IT employees, identify their preferred savings and investment avenues, and examine tax compliance behaviour along with its association with selected socio-economic factors. The research is based on primary data collected from 75 IT employees through a structured questionnaire. A descriptive research design was adopted, and statistical tools such as percentage analysis, Chi-Square test, and Cronbach’s Alpha were applied to analyse the data and test reliability. The findings reveal a significant association between socio-economic factors and tax compliance behaviour at the 5 percent level of significance. Mutual Funds and Provident Fund emerge as the most preferred investment options, indicating moderate risk appetite and awareness of tax-saving benefits. The reliability analysis shows high internal consistency of the instrument, confirming the validity of the collected data. The study concludes that income level, financial literacy, and awareness of tax regulations play a crucial role in shaping savings decisions and tax compliance practices among IT employees in Thiruvarur City, highlighting the need for improved financial education and simplified tax procedures.