Description
Taxmann Financial Literacy UGCF 2024 by Amit Kumar Singh
Financial independence requires more than just earning money; it involves disciplined money management and informed decision-making. This book aims to equip readers with the essential knowledge and skills to achieve financial independence and confidently make responsible financial decisions.
This book, designed as an additional course for undergraduate students of the University of Delhi, draws from the author's extensive experience in teaching and research. It aims to make financial literacy accessible and practical for all readers, ensuring they can apply their knowledge to achieve financial soundness and independence.
This book is divided into four units, each dwelling on the key concepts of financial literacy, which are as follows:
Financial Planning & Financial Products – Discusses financial literacy in general and introduces the basic concepts such as:
Financial Planning
Spending Management
Time Value of Money
Banking Products & Digital Payments – Makes the readers aware of the different banking products and services that banks offer, digitization of payment systems, and how to protect oneself from financial fraud
Investment Planning & Management – Discusses the various investment planning and management techniques. It delves into the different investment options available in the market. It also emphasizes the need for Life, General & Health Insurance in every individual's life
Tax Planning – Discusses tax planning, introducing the basic tax structure of India, taxation methodologies, exemptions, deductions and filing of returns
The Present Publication is the 2nd Edition, authored by Prof. (Dr) Amit Kumar Singh, with the following noteworthy features:
[Learning Outcomes] Each chapter begins with clear learning outcomes, providing a roadmap of what readers will achieve
[Main Text] Concepts are explained in simple, lucid language with examples and cases to enhance understanding
[Writing Style and Relevance]
Written in simple language to enhance understandability
Includes several real-life examples for relevance to new learners
[Solved Problems] Chapters end with solved numerical problems to help readers grasp the concepts and their applications
[Review Questions] Each chapter includes questions for readers to test their knowledge and review their learning
[Practical Exercises] Real-life applications of financial literacy are emphasized through practical exercises at the end of each chapter
The detailed contents of the book are as follows:
Financial Planning and Financial Products
Financial Literacy
This chapter introduces the concept of financial literacy, emphasizing its importance in making informed financial decisions. It provides a detailed explanation of financial literacy and outlines why individuals must understand financial terms and concepts
The chapter includes a comprehensive vocabulary list covering terms such as Annual Percentage Rate, Asset, Bait and Switch, Bank, Bankruptcy, Borrower, Budget, Comparison Shopping, Credit, Credit Card, Credit Report, Credit Score, Creditworthiness, Debit Card, Debt, Default, Emergency Fund, Expense, Income, Interest, Need vs. Want, Opportunity Cost, Pay Yourself First, Predatory Lending, Principal, Rule of 72, Time Value of Money, and Wealth
To reinforce learning, the chapter concludes with review questions and practical exercises
Saving and Spending Management
This chapter focuses on the fundamentals of saving and spending management. It begins by explaining the difference between needs and wants, highlighting the significance of understanding this distinction for effective financial planning
The chapter outlines steps in spending management and budgeting techniques, stressing the importance of financial discipline in maintaining a balanced financial life. Key components discussed include income, expenses, and savings
The chapter ends with review questions and practical exercises to test readers' understanding and application of the concepts
Financial Goals and Planning
In this chapter, the focus is on setting and achieving financial goals. It explains how to define and categorize financial goals into short-term, mid-term, and long-term
The chapter introduces the SMART criteria (Specific, Measurable, Achievable, Relevant, Timely/Time-Bound) for setting sound financial goals
It also covers the financial planning process, its practical benefits, and the necessity of financial planning
Review questions and practical exercises are included to help readers implement the planning strategies discussed
Time Value of Money
This chapter introduces the concept of the Time Value of Money (TVM), explaining its relevance and application in financial decision-making
It provides a glossary of key TVM terms such as Annuity, Compound Interest, Compounding Frequency, Discount Rate, Future Value, Number of Periods, Perpetuity, and Present Value
The chapter also explores the power of compounding and various discounting methods, providing practical applications such as sinking fund problems, capital recovery, growth rate, interest rate, and deferred payments
Solved problems, review questions and practical exercises are included to reinforce understanding
Banking and Digital Payment
Banking Products and Services
This chapter provides an overview of banking products and services, explaining different types of banking activities, including retail and corporate banking. It also discusses the marketing of digital banking products
The chapter includes review questions and practical exercises to help readers apply the concepts learned
Digitization of Financial Transactions
The chapter explores the impact of digitization on financial services, providing a critical analysis of its benefits and challenges
It covers various digital payment methods, including credit cards, debit cards, prepaid cards, Aadhaar Enabled Payment System (AEPS), net banking, Unified Payment Interface (UPI), and digital wallets
Review questions and practical exercises help readers practice using digital transactions
Protection Against Banking and Financial Fraud
This chapter emphasizes the importance of protecting oneself against financial fraud. It explains different types of financial frauds, including Ponzi schemes and online frauds, and provides measures for protection and security
Review questions and practical exercises are included to test knowledge and apply fraud prevention techniques
Investment Planning and Management
Investment Planning and Management
The chapter introduces the basics of investment planning, defining investment and its objectives
It covers the steps and benefits of investment planning, the concepts of risk and return, and techniques for managing investment portfolios
Various investment alternatives, such as stocks, bonds, mutual funds, real estate, and gold, are discussed
Solved problems, review questions and practical exercises are provided to help readers apply investment planning principles.
Mutual Funds
This chapter overviews mutual funds, discussing types, costs, and benefits. It explains the Net Asset Value (NAV) and addresses common misconceptions
The chapter covers different mutual fund schemes, including systematic investment and withdrawal plans, and provides key points to remember before investing. Tax implications of mutual funds are also discussed
Solved problems, review questions and practical exercises are included to reinforce understanding
Life and General Insurance
This chapter explains the principles of life and general insurance, covering the types of risks included and the benefits of having insurance
It details the different types of life insurance policies, the claim settlement process, and the importance of general insurance
Review questions and practical exercises are provided to help readers understand and apply insurance concepts
Health Insurance
The chapter discusses the importance of health insurance, the types of health insurance policies available, including government-sponsored schemes, and what they cover
It explains the claim settlement process and what to consider before buying health insurance
Review questions and practical exercises are included to reinforce learning
Tax Planning
Personal Tax Planning
This chapter introduces personal tax planning, explaining its importance and benefits. It covers the different types of tax planning, tax management, and the differences between tax avoidance and tax evasion
Review questions and practical exercises are provided to help readers practice tax planning strategies.
Taxation in India
The chapter provides an overview of the taxation system in India, explaining direct and indirect taxes and discussing the Goods and Services Tax (GST)
It covers the taxation of individual income, the different heads of income, and the new and old tax regimes
Solved problems, review questions and practical exercises are included to help readers understand tax implications
Deductions and Exemptions
This chapter explains tax deductions and exemptions, listing various types available to taxpayers
It discusses conditions for opting for the new tax regime and effective tax-saving schemes
Solved problems, review questions and practical exercises are provided to help readers apply tax-saving strategies
E-Filing of Income Tax Return
The chapter introduces the e-filing of income tax returns, explaining different types of return forms and the modes of filing
It covers the advantages of electronic filing and provides precautions to take while filing
Review questions and practical exercises are included to help readers practice e-filing