Taxation and Personal Financial Planning
Subject Overview
The sixth Finance group elective, teaching tax management and personal financial planning — the distinction between tax planning, avoidance and evasion, tax planning across the five heads of income, personal financial planning fundamentals and time value of money, and personal risk and investment planning across tax-saving, mutual fund, fixed-income and capital market instruments. A 4-credit elective theory paper.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Tax management and planning
Introduction to tax management, features and scope, differentiating tax planning/avoidance/evasion, meaning, need, scope, objectives and methods of tax planning
Unit 2: Tax planning across income heads
Tax planning for salary, house property, business/profession, capital gains and other sources income, tax planning with reference to residential status, exempted incomes, permissible deductions, clubbing of income, and setting off/carry forward of losses
Unit 3: Personal financial planning fundamentals
Introduction, features, objectives and scope of personal financial planning, environmental factors affecting planning, time value of money — present and future value calculations and their impact on personal financial statements
Unit 4: Personal risk and investment planning
Personal risk management — risk measurement and identification, life and general insurance, insurance planning for individuals and families, investment planning objectives (retirement, tax saving, capital growth, liquidity, safety), tax-saving instruments (PF, PPF, ELSS, NPS), mutual funds, fixed-income securities, capital and money market instruments, real assets