‘More money, less discipline?’ CoinSwitch co founder warns hidden trap of India’s new tax regime

Ashish Singhal, Co-founder of CoinSwitch, has sparked a timely debate for India’s salaried class and startup employees who are shifting to the new tax regime and enjoying higher liquidity. In a thought-provoking LinkedIn post, Singhal questioned whether this newfound liquidity is genuinely fostering better financial habits — or simply delaying the inevitable scramble every July.

“Only 6.7% of Indians filed ITRs last year,” Singhal pointed out. “Even among those who want to comply — salaried folks, startup employees — filing is often treated as a last-minute emergency.”

With the government promoting the new tax regime for its simplicity and liquidity benefits, Singhal’s observations cut deeper: “Deadlines shift. Habits don’t.”

He argues that India’s low digital tax participation is a blind spot, despite advancements making the system smarter. Yet, convenience hasn’t kept pace. Filing taxes is still viewed as a one-off chore, not part of a healthy financial routine.

Instead of more “file now” pop-ups, Singhal envisions tools that integrate tax planning into everyday financial habits — pre-filled ITRs, smart reminders, AI nudges. Not as seasonal stress, but as part of your daily financial hygiene.

“Tax season comes once a year. Financial planning? That’s every day,” he pointed out.

His post struck a chord with users, one writing, “Imagine if AI could turn tax filing into something as easy as paying for groceries. Isn’t that the future we want?”

For those adopting the new tax regime, the message is clear: Don’t waste your liquidity windfall. Build better habits today, not just next July.