The present invention provides a system and method for creating one or more variants of test data during various test stages is disclosed. The system and method facilitates a user to create a primary variant for test data and to store the primary variant of the test data in a test data variant repository. Any changes performed in the test database by the user are identified by using a tracking mechanism to store one or more new variant along with a variant number with respect to the changes performed in the test database in response to the user's request. The primary variant and the new variants are accessed by the user to perform a comparative analysis and to modify the test data at any test stage.