The Indian income tax system has undergone several reforms with the objective of simplifying taxation, improving compliance, and encouraging economic growth. The introduction of the new tax regime has created choices for taxpayers between the traditional regime with deductions and the new regime with lower tax rates but fewer deductions. This study aims to examine taxpayers' perspectives towards the Indian income tax regime and its influence on their financial behaviour such as investment patterns, savings, insurance decisions, and spending habits. The study uses both primary and secondary data. Primary data was collected from 105 respondents using structured questionnaires, while secondary data was obtained from journals, government publications, and reports. The research analyses the relationship between the tax regime and financial decisions of taxpayers. Findings indicate that awareness of the tax regime plays an important role in shaping investment, saving, insurance, and spending behaviour. The study also provides recommendations for improving taxpayer awareness and policy implementation.