Taxation and Personal Financial planning

Taxation and Personal Financial Planning

Unit-I

Tax Management: Introduction to Tax Management, Features and Scope of Tax Management. Differentiate between Tax Planning, Tax Avoidance and Tax Evasion.

 Tax Planning: Meaning, Need, Scope, Objectives and Methods of Tax Planning.

Unit-II

Tax Planning for Five Heads of Income: Income from Salary, House Property, Profits and Gains from Business or Profession, Capital Gains and Income from Other Sources.

Tax Planning with Reference to Residential Status, Exempted Incomes, Permissible Deductions, Clubbing of Income and Setting Off & Carry Forward of Losses.

Unit-III

Personal Financial Planning: Introduction, Features, Objectives and Scope of Personal Financial Planning.

Environmental Analysis: Screening and Analysis of Environmental Factors Affecting Personal Financial Planning.

Time Value of Money and Personal Financial Statements: Meaning and Calculation of Present Value and Future Value of Money. Factors Affecting the Time Value of Money and its Impact on the Personal Financial Statements.

Unit-IV

Personal Risk Management: Meaning of Risk, Measurement of Risk and its Identification (Risk Taker, Moderate Risk Taker, Risk Averter), Introduction to Life Insurance and General Insurance, Differentiate between Life Insurance and Investment. Insurance Planning for the Individual as well as Family.

Investment Planning: Meaning and Process of Investment Planning. Investment Planning Objectives – Retirement Planning, Tax Saving, Capital Growth, Liquidity and Safety

Investment Instruments for Personal Financial Management: Tax Saving Instruments (All Investments Covered u/s 80C Like, Provident Fund, PPF, ELSS, NPS etc.), Mutual Fund Schemes (Open Ended and Closed Ended; Growth and Dividend Schemes), Fixed Income Securities (Government Bonds, Corporate Debt Securities, Bank Deposits, Fixed Income Plans by Mutual Funds, Post Office Saving Schemes etc.), Capital Market Instruments (Equity Shares, Preference Shares, Debentures, Long-term Government as well as Corporate Securities, Derivatives etc.), Money Market Instruments (T-bills, Commercial Papers, Certificate of Deposits etc.) and Real Assets (Like Real Estate, Precious Metals, Antiques etc.).