GST (Goods and Services Tax) is a single tax levied on the supply of goods and services in India. It replaced many indirect taxes. For Class 10, you need to understand CGST, SGST, IGST and calculate tax amounts.

How is income tax calculated?

Income tax is calculated on taxable income after subtracting exemptions and deductions. Tax slabs determine what percentage applies to different income ranges.

What is a share and dividend?

A share represents a unit of ownership in a company. Dividend is the share of profit paid to shareholders. Dividend % is calculated on the face value of the share.

Class 10 Maths Chapter 4 Financial Planning Solutions | Maharashtra Board SSC

This page provides complete solutions for Maharashtra Board Class 10 Maths Chapter 4 — Financial Planning. This unique chapter combines real-world financial concepts including GST, Income Tax, Share Market, and Banking with Maths. These are practical life skills as well as exam topics.

📋 Table of Contents

Introduction to Financial Planning

Financial planning involves making smart decisions about money — earning, spending, saving, and investing. Chapter 4 teaches four major financial concepts that every citizen needs to understand: GST (taxation on goods/services), Income Tax (tax on earnings), Shares (stock market investment), and Banking (loans, EMI, interest).

🔢 Financial Planning Key Terms

GST = CGST + SGST (for within state) = IGST (for inter-state)
CGST = SGST = GST rate / 2
Tax amount = (GST% / 100) × Cost price
MRP (Maximum Retail Price) = the printed price
Discount = MRP − Selling Price
Face Value (FV) = value printed on share certificate
Market Value (MV) = current buying/selling price of share
Dividend = (Dividend% / 100) × Face Value × number of shares
Yield = (Dividend per share / Market Value) × 100

GST — Goods and Services Tax

GST is a comprehensive indirect tax levied at every stage of production and sale of goods and services. There are four main GST rates in India: 5%, 12%, 18%, and 28%.

CGST — Central GST (collected by Central Government) = half the GST rate
SGST — State GST (collected by State Government) = half the GST rate
IGST — Integrated GST (for inter-state transactions) = full GST rate

Practice Set 4.1 — GST Solutions

Q: A trader buys goods worth ₹50,000 at 12% GST and sells them for ₹65,000 at 12% GST. Find the GST paid to the government.

Step 1: Input GST (paid while buying): 12% of ₹50,000 = ₹6,000

Step 2: Output GST (collected while selling): 12% of ₹65,000 = ₹7,800

Step 3: GST payable to government = Output GST − Input GST

Step 4: = ₹7,800 − ₹6,000 = ₹1,800

✅ Answer: GST paid to government = ₹1,800

Q: A mobile phone costs ₹25,000 (before GST). If GST rate is 18%, find CGST, SGST, and final price.

Step 1: Total GST = 18% of ₹25,000 = ₹4,500

Step 2: CGST = 9% of ₹25,000 = ₹2,250

Step 3: SGST = 9% of ₹25,000 = ₹2,250

Step 4: Final price = ₹25,000 + ₹4,500 = ₹29,500

✅ Answer: CGST = ₹2,250, SGST = ₹2,250, Final Price = ₹29,500

Q: An AC costs ₹35,000 excluding GST. GST rate is 28%. Find the price a customer pays.

Step 1: GST amount = 28% of ₹35,000 = ₹9,800

Step 2: Customer’s price = ₹35,000 + ₹9,800 = ₹44,800

✅ Answer: Customer pays ₹44,800

Q: A washing machine has MRP ₹28,000. A shopkeeper gives 10% discount. GST rate is 12%. Find the price paid by customer.

Step 1: Discount = 10% of ₹28,000 = ₹2,800

Step 2: Selling price after discount = ₹28,000 − ₹2,800 = ₹25,200

Step 3: GST on selling price = 12% of ₹25,200 = ₹3,024

Step 4: Final price paid = ₹25,200 + ₹3,024 = ₹28,224

✅ Answer: Customer pays ₹28,224

Income Tax

Income tax is a direct tax paid to the government on income earned. Key concepts for Class 10 include: taxable income, income tax slabs, exemptions, deductions (like Section 80C investments), and computation of net tax payable.

🔢 Income Tax Key Terms

Gross Income = Total income from all sources
Net Taxable Income = Gross Income − Exemptions − Deductions
Tax slab 2024: Up to ₹3L = nil; ₹3L−6L = 5%; ₹6L−9L = 10%; ₹9L−12L = 15%; ₹12L−15L = 20%; above ₹15L = 30%
Education Cess = 4% of total income tax
Total tax = Income tax + Education Cess

Practice Set 4.2 — Income Tax Solutions

Q: Mr. Shah’s annual income is ₹7,50,000. He has deductions of ₹1,50,000 under Section 80C. Calculate income tax (using old slab). Old slab: up to ₹2.5L: nil; ₹2.5L–5L: 5%; ₹5L–7.5L: 10%

Step 1: Taxable income = ₹7,50,000 − ₹1,50,000 = ₹6,00,000

Step 2: Tax on first ₹2,50,000 = nil

Step 3: Tax on next ₹2,50,000 (₹2.5L to ₹5L) = 5% of ₹2,50,000 = ₹12,500

Step 4: Tax on next ₹1,00,000 (₹5L to ₹6L) = 10% of ₹1,00,000 = ₹10,000

Step 5: Total income tax = ₹12,500 + ₹10,000 = ₹22,500

Step 6: Education Cess = 4% of ₹22,500 = ₹900

Step 7: Total tax payable = ₹22,500 + ₹900 = ₹23,400

✅ Answer: Total Income Tax payable = ₹23,400

Q: Ms. Joshi earns ₹5,20,000 per year. She invests ₹80,000 in PPF. Standard deduction: ₹50,000. Calculate her income tax (5% on ₹2.5L–5L slab).

Step 1: Gross income = ₹5,20,000

Step 2: Deductions: Standard ₹50,000 + PPF ₹80,000 = ₹1,30,000

Step 3: Taxable income = ₹5,20,000 − ₹1,30,000 = ₹3,90,000

Step 4: Tax on first ₹2,50,000 = nil

Step 5: Tax on ₹1,40,000 (₹2.5L to ₹3.9L) at 5% = ₹7,000

Step 6: Education Cess = 4% of ₹7,000 = ₹280

Step 7: Total tax = ₹7,000 + ₹280 = ₹7,280

✅ Answer: Income Tax payable = ₹7,280

Shares and Dividends

A share is a unit of ownership in a company. Companies issue shares to raise funds. Shareholders receive dividends (a portion of profit) based on the number and face value of shares held.

Practice Set 4.3 — Shares and Dividends

Q: A man buys 200 shares of face value ₹10 each at a premium of ₹5. Company declares 20% dividend. Find his annual dividend and yield.

Step 1: Face value (FV) = ₹10 per share

Step 2: Market value (MV) = ₹10 + ₹5 = ₹15 per share

Step 3: Total investment = 200 × ₹15 = ₹3,000

Step 4: Dividend per share = 20% of FV = 20% of ₹10 = ₹2

Step 5: Total dividend = 200 × ₹2 = ₹400

Step 6: Yield = (Dividend / Investment) × 100 = (400/3000) × 100 = 13.33%

✅ Answer: Annual dividend = ₹400, Yield ≈ 13.33%

Q: A person invests ₹12,000 in shares of FV ₹10 at a market value of ₹20. Company declares 15% dividend. Calculate the income and return on investment.

Step 1: Number of shares = ₹12,000 / ₹20 = 600 shares

Step 2: Dividend per share = 15% of ₹10 = ₹1.50

Step 3: Total dividend income = 600 × ₹1.50 = ₹900

Step 4: Return on investment = (900/12000) × 100 = 7.5%

✅ Answer: Dividend income = ₹900, ROI = 7.5%

Practice Set 4.4 — Banking and Loans (EMI)

🔢 Banking Formulas

Simple Interest (SI) = P × R × T / 100
Compound Interest: A = P(1 + R/100)ⁿ
EMI = [P × r × (1+r)ⁿ] / [(1+r)ⁿ − 1] where r = monthly rate
Total interest in loan = (EMI × n) − Principal

Q: A person takes a loan of ₹2,00,000 at 12% per annum for 2 years. Calculate simple interest and total amount.

Step 1: P = ₹2,00,000, R = 12%, T = 2 years

Step 2: SI = (2,00,000 × 12 × 2) / 100 = ₹48,000

Step 3: Total amount = ₹2,00,000 + ₹48,000 = ₹2,48,000

✅ Answer: Simple Interest = ₹48,000, Total Amount = ₹2,48,000

Q: Ravi deposits ₹1,000 every month in a recurring deposit at 8% per annum for 2 years. Find the maturity amount. (For SSC: use formula Maturity = n×P + SI on each installment)

Step 1: Monthly deposit P = ₹1,000, Rate = 8%pa, n = 24 months

Step 2: Total principal = 24 × 1000 = ₹24,000

Step 3: Interest = P × n(n+1)/2 × R/(12×100) = 1000 × 24×25/2 × 8/1200

Step 4: = 1000 × 300 × 8/1200 = 1000 × 2 = ₹2,000

Step 5: Maturity amount = ₹24,000 + ₹2,000 = ₹26,000

✅ Answer: Maturity amount = ₹26,000

Important Terms Glossary

Term	Meaning
GST	Goods and Services Tax — unified indirect tax in India
CGST/SGST	Central/State component of GST for intra-state trade (each = GST/2)
IGST	Integrated GST for inter-state transactions (full rate)
Face Value	The printed value of a share on the certificate
Market Value	The current price at which a share is bought/sold
Dividend	Share of profit paid to shareholders based on Face Value
Yield/Return	Actual return on investment (dividend ÷ market price × 100)
EMI	Equated Monthly Instalment — fixed monthly loan payment
Principal	Original amount borrowed or invested
Taxable Income	Income after all exemptions and deductions

FAQs

How is GST different from old taxes like VAT?

GST replaced multiple indirect taxes like VAT, Service Tax, Excise Duty etc. with one single tax. GST follows Input Tax Credit system — you pay tax only on the value you add, not on the entire value.

What is the difference between Face Value and Market Value of a share?

Face Value (FV) is the original price printed on the share certificate (often ₹10 or ₹100). Market Value (MV) is the current buying/selling price in the stock market, which changes daily. Dividend is always calculated on Face Value, not Market Value.

What is Section 80C deduction in income tax?

Section 80C allows you to deduct up to ₹1,50,000 per year from your taxable income for investments in PPF, life insurance premiums, ELSS funds, NSC, home loan principal, etc. This reduces your tax liability.

How many marks does Chapter 4 carry in SSC board exam?

Financial Planning carries approximately 6-8 marks in the SSC Algebra board paper. It typically has 1-2 word problems. GST problems and share market problems are most commonly asked.