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.

• The responses based on 4 parts each containing 5 predesigned questions collected from several employees.

• 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 SIZEA sample size of 150 employees has been

taken.

RESEARCH METHODOLOGY

SAMPLING METHOD

Convenience sampling

TECHNIQUE USED

Chi-square test

Analysis

Demographic Factors

28%

33%

22%

11%

6%

Number

Upto Rs. 2,00,000 Rs. 2,00,001 to Rs. 2,50,000 Rs. 2,50,001 to Rs. 5,00,000Rs. 5,00,001 to Rs. 10,00,000 Above Rs. 10,00,000

50%50%

Numbers

MALE FEMALE

20%

30%40%

10%

Numbers

Senior Secondary Graduate Post Graduate Doctorate

  Question sex N Mean Standard deviation

1 You would cheat on tax if you have the chance

FM

6362

3.93.7

1.1801.049

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

FM

6362

3.32.8

1.3591.228

3 We cannot blame taxpayers that evade tax.

FM

6362

3.553.07

1.3291.300

4 If in doubt about whether or not to report a certain source of income, you would not report it

FM

6362

3.93.8

1.3831.241

5 Taxes are so heavy that tax evasion is an economic necessity for many to survive

FM

6362

3.83.4

1.1931.276

6 You pay less tax if you know that you would not be penalized

FM

6362

3.83.7

1.3721.599

7

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

FM

6362

3.973.60

1.3371.437

8 Do you think that government wastes a lot of money?

FM

6362

3.623.10

1.2341.104

9 Do you think that the government is untrustworthy?

FM

6362

3.032.93

1.2231.508

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

FM

6362

3.273.03

1.3521.224

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

FM

6362

3.453.35

1.2121.327

  Question Sex N Mean Standard deviation

12

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

FM

6362

3.393.33

1.1281.186

13

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

FM

6362

3.083.01

1.3341.278

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