A STUDY ON THE ETHICAL BEHAVIOR OF INDIAN TAX PAYERS

Presented By Varun Dagar 023 Shamsher Singh 014 Gagan Morwal 019

Abhijit Naskar 008

Deepa Puri 072

ABSTARCT
Ethical values of several tax payers are important as they are the one who
contributes to make a better economy.

This study aims to examine the ethical values of several employees on the
basis of their perception towards several taxation policies and problems they face, so that their behaviour can be mapped carefully.
collected from several employees.

The responses based on 4 parts each containing 5 predesigned questions

The results indicated that there is a significant difference in the ethical

behaviour of male and female employees.

HYPOTHESIS
It was based on the hypothesis:
1)
Null hypothesis: There is no significant difference between the ethical behaviour of
male and females (H0)

Alternate hypothesis: There is a significant difference in the ethical behaviour of

students on the basis of gender (H1)

OBJECTIVES
To examine the ethical behaviour of Indian tax payers. To analyse the difference in the ethical behaviour of male and female tax payers.

RESEARCH METHODOLOGY

RESEARCH DESIGN Exploratory research SOURCE OF INFORMATION Primary data

RESEARCH METHODOLOGY

DATA COLLECTION METHOD Primary Data: Questionnaire. SAMPLING SIZE A sample size of 150 employees has been taken.

RESEARCH METHODOLOGY

SAMPLING METHOD Convenience sampling

TECHNIQUE USED
Chi-square test

Analysis

Demographic Factors
Number
6% 11% 28%

22%

33%

Upto Rs. 2,00,000

Rs. 2,00,001 to Rs. 2,50,000

Rs. 2,50,001 to Rs. 5,00,000

Rs. 5,00,001 to Rs. 10,00,000

Above Rs. 10,00,000

Numbers
0% 0%

50% 50%

MALE

FEMALE

Numbers
10%

20%

40% 30%

Senior Secondary

Graduate

Post Graduate

Doctorate

Question

sex

Mean

Standard deviation

You would cheat on tax if you have the chance F M

63 62

3.9 3.7

1.180 1.049

It is wrong if a taxpayer does not report all of F his or her income in order to pay less income M tax.

63 62 63 62 63 62

3.3 2.8 3.55 3.07 3.9 3.8

1.359 1.228 1.329 1.300 1.383 1.241

We cannot blame taxpayers that F M evade tax. If in doubt about whether or not to F report a certain source of income, you M would not report it

Taxes are so heavy that tax evasion is F an economic necessity for many to M survive You pay less tax if you know that you F M would not be penalized

63 62

3.8 3.4

1.193 1.276

63 62

3.8 3.7

1.372 1.599

7 Do you consider the amount of income tax which you have to pay is too high?

F M

63 62

3.97 3.60

1.337 1.437

Do you think that government wastes a lot F of money? M

63 62

3.62 3.10

1.234 1.104

Do you think that the government is F untrustworthy? M

63 62

3.03 2.93

1.223 1.508

10

Do you think that the government does not F care much what people like you think? M

63 62

3.27 3.03

1.352 1.224

11

The present tax system benefits the rich and F is unfair to the ordinary working man or M woman

63 62

3.45 3.35

1.212 1.327

Question 12

Sex F M

N 63 62

Mean 3.39 3.33

Standard deviation 1.128 1.186

Do you agree paying a relatively small fine would deter people from evading tax if government detects tax evasion?

13

F M Do you agree paying a substantial fine would deter people from evading tax if the government detects tax evasion?

63 62

3.08 3.01

1.334 1.278

Findings
There is a difference in the mean responses obtained from males and females Females are less ethical than males even though the difference is not that significant There is a difference in the ethical behaviour of high qualified tax payers but difference is not
significant

The null hypothesis, stating that there is no significant difference between the ethical behavior of
males and females is rejected

Average of Mean in case of Females = 3.23 Average of Mean in case of males = 3.01 That indicates that males are more ethical as compare to female Those who are new to corporate world are more unethical as it was clear from the responses that
there Average of means were around 3.6

 Based on our findings, it was concluded that there is a difference in

the ethical behaviour of tax payers based on their gender, but the difference is not that significant.

So, Indian taxpayers have somewhat similar behaviours on ethical

front.

Families still consider it to be their primary responsibility of tax

payers, and ensuring that their family receives all the necessities and luxuries to become responsible members to the society