Financial Planning

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Financial planning is the process where an individual first spends on primary necessities, saves the remaining amount, and then uses these savings to make carefully considered investments. The main pu…

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Predictable expenses: (1) Education of children, (2) Buying a vehicle, (3) Old age requirements. Unpredictable expenses: (1) Natural disasters, (2) Medical expenses for family members, (3) Loss due to…

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In investments, there is a direct relationship between risk and gain. It is possible to make big gains by taking greater risk, but greater risk can also lead to greater loss. Investors must carefully …

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Banks and postal departments offer safer investments because they provide guaranteed returns with minimal risk. Shares and mutual funds carry higher risk because the money is invested in businesses or…

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Direct taxes are taxes that are paid directly by the taxpayer to the government. Examples include: (1) Income tax, (2) Wealth tax, (3) Professional tax. These taxes cannot be transferred to another pe…

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Indirect taxes are taxes that are not paid directly by the taxpayer but are collected through intermediaries. Examples include: (1) Central sales tax, (2) Value Added Tax (VAT), (3) Service tax, (4) E…

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An assessee is any person who is liable to pay income tax according to the Income Tax Rules. This includes individuals, companies, firms, or any other entity that earns taxable income and is required …

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Financial Year: The period during which taxable income is earned (April 1 to March 31). Assessment Year: The financial year immediately following the financial year, during which tax for the previous …