Taxmann’s Financial Literacy | UGCF by Amit Kumar Singh – 2nd Edition June 2024.

Taxmann’s Financial Literacy | UGCF by Amit Kumar Singh – 2nd Edition June 2024.

Description:-

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 2^nd 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.

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