A STUDY ON FINANCIAL PLANNING OF SALARIED EMPLOYEES AND THEIR TAX PLANNING STRATEGIES IN CHENNAI CITY

Financial planning has become increasingly important for salaried employees due to rising living expenses, changing lifestyle needs, and complex tax regulations. Effective tax planning forms a vital component of overall financial management, enabling individuals to optimize income, enhance savings, and ensure long-term financial security. This research article examines the financial planning practices and tax planning strategies adopted by salaried employees in Chennai City. The study aims to assess income allocation, savings and investment patterns, awareness of tax-saving instruments, and the factors influencing financial decision-making among salaried individuals. The study is based on both primary and secondary data. Primary data were collected through a structured questionnaire administered to salaried employees from different occupational sectors in Chennai City. Secondary data were sourced from academic journals, books, reports, and official publications. Statistical tools such as percentage analysis, ranking methods, and chi-square tests were used for data analysis and interpretation. The findings reveal that while a majority of salaried employees are aware of the importance of financial and tax planning, their strategies are largely confined to traditional tax-saving instruments such as provident funds, life insurance policies, and investments under Section 80C of the Income Tax Act. The study further identifies income level, age, and financial literacy as significant determinants of financial planning behavior. The research concludes that enhanced financial education and professional guidance can improve effective financial and tax planning among salaried employees.