VAC: Financial Literacy Semester 1 Notes by Abhishek Kumar
Syllabus:
UNIT- I Financial Planning and Financial Products (3 Weeks)
• Introduction to Saving
• Time value of money
• Management of spending and financial discipline
UNIT- II Banking and Digital Payment (4 Weeks)
• Banking products and services
• Digitisation of financial transactions: Debit Cards {ATM Cards)
and Credit Cards.,
Net banking and UPI, digital wallets
• Security and precautions against Ponzi schemes and online
frauds
UNIT- Ill Investment Planning and Management (4 Weeks)
• Investment opportunity and financial products
• Insurance Planning: Life and non-life including medical
insurance schemes
UNIT- IV Personal Tax (4 Weeks)
• Introduction to basic Tax Structure in India for personal taxation
• Aspects of Personal tax planning
• Exemptions and deductions for individuals
• e-filing
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Financial Planning
•
Financial planning is the process of managing and assessing
your finances to achieve your life goals and assets.
•
The goal of financial planning is to ensure enough money is
available at the right time to meet life goals.
•
Financial goals may include purchasing a car, a flat, funding
education, protecting family through insurance, planning for
retirement, managing debt, saving taxes, and passing on
wealth to the next generation.
•
The process involves evaluating investments and estimating
future needs to create a plan that will help clients achieve
their financial goals.
Financial planning also includes:
• Using a monthly spending plan or budget to keep finances
on track
• Making decisions about the job and its benefits
• Getting the most out of other financial resources, including
insurance and employer provided benefits
• Saving and investing money
• Controlling expenses and staying out of debt
• Planning for estate transfer
The Need of Financial Planning
•
Financial planning is necessary to meet one's financial goals, which help
achieve one's life goals.
•
Financial planning involves analyzing one's current situation, including income
level, wealth, responsibilities, aspirations, risk profile, ability to save, and
lifestyle.
•
Changes in the Indian financial markets have made financial planning more
important due to increased volatility and integration with global markets.
•
Investment options have increased and now include bank deposits, bonds,
mutual funds, equities, derivatives, gold, real estate, and equities of foreign
companies, with the universe of options likely to expand further.
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Steps in financial planning: Financial planning is the process of
setting financial goals, evaluating an individual's financial status, and
developing a comprehensive plan to achieve those goals. The following
are the steps involved in financial planning:
1. Assessing the Current Financial Status: This step involves evaluating an
individual's financial situation, including income, expenses, debt, assets, and
liabilities.
2. Setting Financial Goals: Once an individual has assessed their current
financial status, they can set realistic and achievable financial goals.
3. Developing a Financial Plan: A financial plan is a comprehensive
document that outlines the steps an individual will take to achieve their
financial goals.
4. Implementing the Plan: This step involves taking the necessary actions to
put the financial plan into action.
5. Monitoring and Revising the Plan: Financial plans should be reviewed
periodically to ensure that they are still aligned with an individual's current
financial situation and goals.
Financial Products
Financial products refer to various types of investment vehicles,
insurance policies, and banking services offered by financial
institutions to help individuals and businesses manage their
finances, achieve their financial goals, and protect their assets.
Here are some examples of financial products:
•
Savings and deposit accounts: These are banking products
that allow individuals and businesses to deposit money, earn
interest, and withdraw funds as needed.
•
Credit cards and loans: These are financial products that
allow individuals and businesses to borrow money and make
payments over time, with interest charged on the
outstanding balance.
•
Mutual funds: These are investment products that pool
money from multiple investors to invest in a diversified
portfolio of stocks, bonds, and other assets, managed by a
professional fund manager.
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•
Stocks and bonds: These are investment products that allow
individuals and businesses to buy ownership in a company
(stocks) or lend money to a company (bonds) in exchange
for potential returns.
•
Insurance policies: These are financial products that protect
against potential losses due to unforeseen events, such as life
insurance, health insurance, auto insurance, and property
insurance.
•
Retirement accounts: These are investment products that
help individuals save for retirement, such as 401(k) plans,
IRAs, and pension plans.
There are many other types of financial products available, and
each product has its own features, benefits, and risks. It's
important to carefully evaluate each product to determine if it
aligns with your financial goals and risk tolerance.
Introduction to Savings
Savings is the process of setting aside money for future use. It is an
important part of financial planning as it helps individuals to achieve
their financial goals.
Saving money has many benefits, some of which are:
1. Financial Security: Having savings provides financial security and can help
individuals to cope with unexpected expenses such as medical emergencies,
car repairs, or job loss.
2. Achieving Financial Goals: Saving money can help individuals to achieve
their financial goals such as buying a house, saving for retirement, or starting
a business.
3. Earning Interest: Savings that are deposited in a bank account earn
interest, which can help individuals to grow their wealth over time.
4. Avoiding Debt: Having savings can help individuals to avoid taking on debt
to cover unexpected expenses.
5. Peace of Mind: Knowing that one has savings can provide peace of mind
and reduce financial stress
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TIME VALUE OF MONEY
•
Money has time value because a rupee today is worth more
than a rupee in the future due to factors such as the
opportunity cost of sacrificing present needs for future goals,
inflation, and the need for compensation for risk and returns.
•
In an inflationary period, the purchasing power of money
decreases over time, so it's important to consider the impact
of inflation when saving and investing for the future.
•
The person who saves money will ultimately use it for
productive purposes, so they should be compensated for the
sacrifice of their present needs through interest or returns.
•
When lending money to others, there is a risk of default, so
compensation in the form of interest or returns is needed to
offset this risk.
In this topic, various numericals with their calculations are given to
enable one to become competent in solving problems on
financial mathematics and ultimately in making an appropriate
financial plan which will meet the financial needs of the clients as
and when the time for this arises. In order to do financial
mathematics, one needs to buy a financial calculator — either
CASIO FC 100 or FC 200V, but these can also be done on an Excel
sheet.
The various terms used in financial mathematics are:
PV Present value
FV Future value
Pmt Payment/annuity/cash inflow/cash outflow
i Interest rate/discount rate/required rate
N/Nper Number of periods
Bgn Beginning of the period
End End of the period
Type 1 for beginning of the period and 0 for end of the period (Excel)
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CALCULATION OF FUTURE VALUE FOR A ONE-TIME INVESTMENT I.E. A
SINGLE INVESTMENT
The formula for calculating the future value (FV) of a one-time
investment (PV) is:
FV = PV x (1 + r)^n
Where:
•
r = the interest rate or rate of return per compounding period
(usually expressed as a decimal)
•
n = the number of compounding periods
For example, if you invest Rs. 10,000 today for 5 years at an annual
interest rate of 8%, the future value of your investment can be
calculated as follows:
FV = 10,000 x (1 + 0.08)^5 = 10,000 x 1.469 = Rs. 14,690
Therefore, your investment of Rs. 10,000 today would be worth Rs.
14,690 after 5 years at an annual interest rate of 8%.
With the help of Financial Calculator
In FC–100 or FC–200 or FC–200 V
Go to CMPD (compounding) key and feed the values
To go to the next step, use the EXE key
Here PV (present value or one-time investment) is Rs. 10,000, i is 8%
and n is 5 years
PV is always indicated as a minus
– 10000 PV
8
i
5
n
Compute/solve FV = Rs. 14690
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Q. A person borrowed Rs. 1,00,000 at 8% per annum, compounded
quarterly. What amount does he have to pay back after 5 years?
Solution: With the help of a Financial Calculator
– 100000 PV
2
i
20
n
Comp FV = Rs. 1,48,594.74
In this case, the rate of interest will be divided by 4 as it is quarterly
compounding and the number of periods will be 5 × 4 = 20. The
same data will be fed into an Excel sheet to compute future
value. When one takes a loan, it will be assumed as PV and in this
case one has to make a lump sum payment of the loan with
interest at the end of the 5-year term.
Q. What amount should be invested now for it to become Rs.
85,000 in 5 years when the rate of return is 9% per annum and
compounding is done once a year?
Formula
PV = FV/(1 + R)^N
= 85000/(1.09)^5
= Rs. 55,244.17
With the help of Financial Calculator
85000 FV
5
n
9
i
Comp PV = Rs. –55,244.30
With the help of Excel
Go to fx, select the category: Financial, select PV and feed the
values
Rate = 9% or 0.09
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Nper = 5
FV = Rs. 85,000
Formula result is Rs. –55,244.17
Q. Richa invests Rs. 55,000 into a bank fixed deposit which pays
semi-annual interest. Richa has given the option of reinvestment.
After 5 years the amount becomes Rs. 85,413.31.
Calculate the annual rate of interest given by the bank?
With the help of a Financial Calculator
–55000 PV
85413.31 FV
10
n
Comp I = 4.49 or 4.5%
Annual rate will be 9%
This i will be a semi-annual rate; it will be multiplied by 2 to arrive at
the annualized rate.
Management of spending and financial discipline:
Managing spending and practicing financial discipline are essential for achieving
financial goals. Financial discipline is the ability to control your spending habits and
make responsible financial decisions. The following are some tips for managing
spending and practicing financial discipline:
1. Create a Budget: Creating a budget and sticking to it is the foundation of
financial discipline. A budget helps individuals to track their spending and
ensure that they are living within their means.
2. Avoid Impulse Buying: Impulse buying can lead to overspending and can
derail an individual's financial goals. To avoid impulse buying, individuals
should make a list of necessary items and stick to it.
3. Use Cash: Using cash instead of credit cards can help individuals to manage
their spending and avoid overspending.
4. Avoid Debt: Avoiding debt is critical for financial discipline. Individuals
should aim to pay off their debts as soon as possible and avoid taking on new
debt.
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5. Save First: Instead of spending first and saving what is left, individuals
should aim to save first and then spend what is left.
6. Review your finances regularly: It's important to track your expenses, income, and
net worth regularly to ensure you're on track to meet your financial goals. You can
use a personal finance app or a spreadsheet to track your finances. Review your
budget, spending, and investments periodically and adjust them as needed.
7. Build an emergency fund: An emergency fund is a savings account that you can use
to cover unexpected expenses, such as medical bills, car repairs, or job loss. Aim to
save three to six months' worth of living expenses in your emergency fund.
Banking and Digital Payment
•
Banking involves depositing money into an account, which can be
used for making payments, earning interest, and borrowing money.
Banks also offer various financial products such as loans, credit cards,
and insurance.
•
Digital payment refers to the use of electronic means to transfer money
from one account to another. This can be done through online
banking, mobile wallets, and payment gateways. Digital payment is
convenient, fast, and secure, and is increasingly replacing traditional
cash and check payments.
Banking products and services in India are diverse and cater to the needs of various
individuals and businesses. Here are some of the most common banking products
and services available in India:
1. Savings Account: A savings account is a basic type of bank account that
allows individuals to deposit and withdraw money, earn interest on their
deposits, and access basic banking services such as debit cards and online
banking.
2. Current Account: A current account is designed for businesses and allows
them to deposit and withdraw money, make and receive payments, and
access overdraft facilities.
3. Fixed Deposits: Fixed deposits are investment products that offer a fixed rate
of interest over a fixed period of time. They are popular among individuals
looking for a low-risk investment option.
4. Loans: Banks offer various types of loans such as home loans, personal loans,
car loans, and education loans. These loans provide individuals with the
necessary funds to purchase a house, a car, or finance their education. The
interest rates and eligibility criteria for each type of loan may vary.
5. Credit Cards: Credit cards are payment cards that allow individuals to make
purchases on credit. Credit card users can repay their debt in full or in part,
with interest charged on the outstanding balance.
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6. Online Banking: Most banks in India offer online banking services that allow
customers to access their accounts, make transfers, and pay bills from their
computers or mobile devices.
7. Wealth Management: Wealth management services are offered by banks to
help individuals manage their investments, plan for retirement, and minimize
their tax liability.
8. Insurance: Many banks in India offer various types of insurance, including life
insurance, health insurance, and vehicle insurance.
9. Investments: Banks offer a variety of investment products, such as mutual
funds, stocks, bonds, and other securities, to help customers grow their wealth
10. Mutual funds: Banks also offer mutual fund investment products where
customers can invest in a pool of securities managed by a fund manager.
Digitization has transformed the way financial transactions are conducted. Some of
the popular digitized financial transactions in India include:
1. Debit Cards (ATM Cards) and Credit Cards: Debit and Credit cards are widely
used for cashless transactions. Debit cards allow the cardholder to withdraw
money from ATMs and make payments online or in stores. Credit cards, on
the other hand, allow the cardholder to borrow money from the bank up to a
pre-determined credit limit and repay it with interest. Credit cards also offer
various reward programs and cashback offers.
2. Net Banking and UPI: Net banking enables customers to perform banking
transactions such as fund transfers, bill payments, and check account
balances through the internet. Unified Payments Interface (UPI) is a real-time
payment system that enables instant fund transfer between bank accounts
through a mobile phone.
3. Digital Wallets: Digital wallets are mobile applications that enable users to
store digital money and make cashless transactions. They can be used to pay
for bills, recharge mobile phones, and make online purchases. Some popular
digital wallets in India include Paytm, PhonePe, and Google Pay.
Security and precautions against Ponzi schemes and online frauds:
It is important to be aware of security measures and precautions against Ponzi
schemes and online frauds to protect your finances. Some of the measures are:
1. Research and verify: Before investing in any scheme or product, it is important
to research and verify its authenticity. Check for licenses and registrations,
track record, and reviews from trusted sources.
2. Avoid high returns: Be cautious of investment schemes that offer
exceptionally high returns. Such schemes could be a trap for Ponzi schemes.
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3. Don't share sensitive information: Avoid sharing sensitive information like bank
account details, passwords, or any personal information with anyone over
phone calls, text messages, or emails.
4. Use secure platforms: Always use secure websites and apps for financial
transactions. Look for the "https" protocol and padlock icon on websites
before making any financial transactions.
5. Keep software updated: Keep your computer and mobile devices updated
with the latest security software, operating systems, and web browsers to
prevent online fraud.
6. Use two-factor authentication: Enable two-factor authentication for your
financial accounts. It adds an extra layer of security by requiring you to enter
a unique code sent to your phone or email along with your password.
7. Stay alert: Be aware of any suspicious emails, messages, or calls claiming to
be from financial institutions. Report any such instances immediately to your
bank and law enforcement agencies.
8. Use antivirus software: Use antivirus software to protect your computer or
mobile device from malware and viruses that can compromise your personal
and financial information
9. Be cautious while using public Wi-Fi networks as they are often unsecured and
can be used to steal personal information
10. Educate yourself and others about online security risks and ways to protect
against them. Stay informed about the latest security trends and best
practices
By following these security measures and precautions, you can safeguard your
finances against Ponzi schemes and online frauds.
Investment Planning and Management
Investment planning involves the process of identifying investment goals and
developing a plan to achieve those goals. Investing can help individuals to grow their
wealth over time and achieve their financial goals such as saving for retirement,
funding a child's education, or buying a house.
Steps in Investment Planning:
1. Determine Investment Goals: The first step in investment planning is to
determine investment goals. Individuals should identify their short-term and
long-term investment goals and determine how much money they need to
achieve those goals.
2. Assess Risk Tolerance: Risk tolerance refers to an individual's willingness
to accept risk when investing. Individuals should assess their risk tolerance
and choose investments that align with their risk tolerance.
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3. Determine Investment Options: There are various investment options
available such as stocks, bonds, mutual funds, and real estate. Individuals
should research and evaluate different investment options and choose the
ones that align with their investment goals and risk tolerance.
4. Develop an Investment Plan: Once investment goals, risk tolerance, and
investment options are determined, individuals should develop an investment
plan. The plan should include a portfolio allocation strategy, investment
timeline, and expected return on investment.
5. Monitor and Adjust the Investment Plan: Monitoring and adjusting the
investment plan is essential to ensure that the plan is on track to achieve
investment goals. Individuals should regularly review their investment
portfolio and make adjustments as necessary to ensure that their investment
plan aligns with their investment goals and risk tolerance.
Benefits of Investment Planning:
1. Achieving Financial Goals: Investment planning can help individuals to
achieve their financial goals such as saving for retirement, funding a child's
education, or buying a house.
2. Wealth Accumulation: Investing can help individuals to grow their wealth
over time and achieve financial security.
3. Diversification: Investment planning can help individuals to diversify their
portfolio and reduce the risk of losing money.
4. Tax Benefits: Some investments offer tax benefits such as tax-deferred
growth or tax-free withdrawals.
5. Inflation Protection: Investing can help individuals to protect their
investments from the effects of inflation.
Investment opportunity and financial products
Investment opportunities refer to the various ways you can invest
your money with the aim of earning a return on your investment.
Some popular investment opportunities include:
1. Stocks: These are shares of ownership in a company. When
you buy stocks, you become a shareholder in the company
and are entitled to a portion of its profits.
2. Bonds: These are debt securities issued by companies or
governments. When you buy a bond, you are essentially
lending money to the issuer, and in return, you receive
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regular interest payments and the return of your principal
when the bond matures.
3. Mutual funds: These are professionally managed investment
portfolios that pool money from many investors to buy a
diverse mix of stocks, bonds, and other assets.
4. Real estate: This includes investing in rental properties, REITs
(Real Estate Investment Trusts), and other real estate-related
assets.
5. Cryptocurrencies: These are digital currencies that use
encryption techniques to secure and verify transactions and
control the creation of new units
Financial products refer to the various types of investment vehicles
and tools that are available to investors. Some popular financial
products include:
1. Bank products: These include savings accounts, checking
accounts, money market accounts, and certificates of
deposit (CDs).
2. Insurance products: These include life insurance, health
insurance, auto insurance, and home insurance.
3. Investment products: These include stocks, bonds, mutual
funds, exchange-traded funds (ETFs), options, futures, and
real estate investment trusts (REITs).
4. Retirement products: These include 401(k) plans, individual
retirement accounts (IRAs), and annuities.
5. Credit products: These include credit cards, personal loans,
and mortgages.
6. Alternative investments: These include hedge funds, private
equity, venture capital, and commodities.
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Insurance Planning: Life and non-life including medical
insurance schemes
Insurance planning involves evaluating your risks and determining
the appropriate types and levels of insurance coverage to
protect yourself and your assets from financial loss.
Factors to Consider: When selecting insurance policies, individuals should
consider various factors such as their current and future needs, their budget, and the
policy's features, including the premium, coverage, and benefits.
It is also essential to review insurance policies periodically to ensure that they
continue to meet the policyholder's needs and to make any necessary changes to the
policies.
Need for insurance: Insurance provides financial protection against potential risks
and losses. It helps individuals and businesses manage the financial impact of
unexpected events such as illness, injury, property damage, or liability claims.
Insurance also provides peace of mind by ensuring that individuals and businesses
have the necessary financial resources to cope with such events.
Insurance can be broadly categorized into two categories - life
insurance and non-life insurance.
Life insurance provides financial protection to your family in case
of your untimely death. There are two main types of life insurance
policies:
1. Term life insurance: This provides coverage for a specified
term, typically 10, 20, or 30 years. If the policyholder dies
during the term of the policy, the beneficiaries receive the
death benefit.
2. Permanent life insurance: This provides coverage for the
lifetime of the policyholder. Permanent life insurance policies
also have a savings component that grows over time and
can be used to borrow against or withdraw from.
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Non-life insurance, also known as general insurance, provides financial
protection against losses arising from events like accidents, illness, theft,
and damage to property. The most common types of non-life insurance
include:
1. Health Insurance: Health insurance provides financial protection to the
policyholder in case of illness or injury. Medical expenses can be high, and
having health insurance can help reduce the financial burden on the
policyholder and their family. Health insurance is especially important for
individuals who have a chronic illness or a family history of medical
conditions.
2. Property Insurance: Property insurance provides financial protection to
the policyholder's property in case of damage or loss due to unforeseen events
such as theft, fire, or natural disasters. Property insurance can help the
policyholder cover the cost of repairing or replacing damaged property.
Property insurance is especially important for homeowners who have invested
a significant amount of money in their property.
3. Credit Life Insurance: Credit life insurance provides financial protection to
the policyholder's family in case of the policyholder's death. This type of
insurance is usually taken out in conjunction with a loan or mortgage to
ensure that the debt is paid off in case the borrower dies before the loan is
fully repaid. Credit life insurance is especially important for individuals who
have significant debt and do not want to burden their family with it in case of
their death.
4. Professional Liability Insurance: Professional liability insurance
provides financial protection to individuals in case they are sued for
negligence, errors, or omissions in their professional capacity. This type of
insurance is especially important for professionals such as doctors, lawyers,
and accountants who have a high risk of being sued due to the nature of their
work.
5. Travel insurance: This provides coverage for medical expenses, trip
cancellations, lost luggage, and other travel-related expenses. Travel insurance
policies can also cover emergency medical evacuation and repatriation.
Personal Tax
Personal tax planning is the process of minimizing your tax liability by using various
tax strategies and techniques. It's important to have a basic understanding of the tax
system in your country, including the various tax laws, deductions, exemptions, and
credits. Tax planning strategies can help you minimize your tax liability, including
timing your income and deductions, maximizing your tax credits, and investing in
tax-advantaged accounts. Major life events can have significant tax implications, so
it's important to plan accordingly. Tax compliance involves following the rules and
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regulations set forth by the tax authorities, including filing your taxes on time, paying
your taxes, and keeping accurate records.
1. Understanding Tax Laws: The first step in personal tax planning is to
understand the tax laws applicable in your country or region. This includes
understanding the tax rates, tax deductions, and exemptions, and tax-saving
investment options.
2. Maximizing Deductions and Exemptions: Tax deductions and
exemptions are an essential part of personal tax planning. These can include
expenses related to healthcare, education, and charitable donations. By
maximizing these deductions and exemptions, individuals can lower their
taxable income and reduce their tax liability.
3. Utilizing Tax Credits: Tax credits are incentives provided by the
government to encourage certain behaviours or investments. Examples of tax
credits include the child tax credit, education tax credit, and renewable energy
tax credit. By taking advantage of these credits, individuals can reduce their
tax liability.
Tax Structure in India for Personal Taxation: The tax structure in India for
personal taxation is progressive, which means that the tax rate increases as the
income increases. The tax rates applicable for the financial year 2022-23 are as
follows:
•
For individuals with income up to Rs. 2.5 lakh: Nil
•
For individuals with income between Rs. 2.5 lakh and Rs. 5 lakhs: 5%
•
For individuals with income between Rs. 5 lakh and Rs. 7.5 lakhs: 10%
•
For individuals with income between Rs. 7.5 lakh and Rs. 10 lakhs: 15%
•
For individuals with income between Rs. 10 lakh and Rs. 12.5 lakh: 20%
•
For individuals with income between Rs. 12.5 lakh and Rs. 15 lakhs: 25%
•
For individuals with income above Rs. 15 lakhs: 30%
Exemptions and deductions for individuals
In India, individuals can claim various exemptions and deductions
to reduce their taxable income and lower their tax liability. Some
of the most common exemptions and deductions available to
individuals are as follows:
Exemptions:
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1. Standard deduction: Individuals can claim a standard
deduction of up to Rs. 50,000 from their gross salary income.
2. Leave travel allowance (LTA): LTA is an allowance provided
by employers to employees to cover their travel expenses
during leave. It is exempt from tax twice in a block of four
years.
3. House rent allowance (HRA): HRA is an allowance provided
by employers to employees to cover their rental expenses.
The exemption amount is calculated as the minimum of
actual HRA received, 50% of salary for individuals residing in
metro cities, or 40% of salary for individuals residing in nonmetro cities.
4. Gratuity: Gratuity is a lump sum payment made by
employers to employees as a retirement benefit. It is exempt
from tax up to a certain limit based on the employee's years
of service.
Deductions:
1. Section 80C: Under this section, individuals can claim
deductions of up to Rs. 1.5 lakh for investments in various
instruments such as PPF, EPF, life insurance premiums, and
ELSS, among others.
2. Section 80D: This section allows individuals to claim
deductions for payment of health insurance premiums for
self, spouse, and dependent children, as well as for payment
of preventive health check-ups.
3. Section 80E: This section allows individuals to claim
deductions for payment of interest on education loans taken
for higher studies.
4. Section 80G: Donations made to certain charitable
organizations are eligible for deductions under this section.
It's important for individuals to understand the various exemptions
and deductions available to them and to plan their investments
and expenses accordingly to optimize their tax planning.
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E-filing refers to the process of filing income tax returns
electronically through the internet. The Income Tax Department of
India has made e-filing mandatory for certain categories of
taxpayers, such as those with an annual income of more than Rs.
5 lakhs or those who are seeking a tax refund.
The e-filing process involves the following steps:
1. Registering on the Income Tax Department's e-filing portal by
providing basic details such as name, PAN, and contact
information.
2. Downloading the appropriate income tax return form based
on the type of income and filing status.
3. Filling in the details of income, deductions, and taxes paid in
the relevant sections of the form.
4. Verifying the tax calculation and ensuring that all details are
accurate and complete.
5. Submitting the form electronically by uploading it on the efiling portal.
6. Generating an acknowledgment receipt or an electronic
verification code (EVC) as proof of submission.
E-filing has several advantages over traditional paper-based filing,
including:
1. Faster processing and quicker refunds.
2. Reduced chances of errors or mistakes.
3. Convenience and ease of use.
4. Access to online tax calculators and other tools to help with
tax planning.
5. Increased transparency and accountability.
It's important for taxpayers to ensure that they file their income tax
returns accurately and on time to avoid penalties and other legal
consequences. Consulting with a tax professional or financial
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advisor can help individuals navigate the e-filing process and
ensure compliance with relevant tax laws and regulations.
All THE BEST FOR EXAMINATION!!
Regards
Abhishek Kumar
Insta: @abhishek_kumar_official_
YouTube: @abhishekkumardu
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