This page provides complete solutions for Maharashtra Board Class 10 Maths Chapter 4 ā 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.
š Table of Contents
Introduction to Financial Planning
Financial planning involves making smart decisions about money ā 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).
š¢ Financial Planning Key Terms
GST = CGST + SGST (for within state) = IGST (for inter-state)CGST = SGST = GST rate / 2Tax amount = (GST% / 100) Ć Cost priceMRP (Maximum Retail Price) = the printed priceDiscount = MRP ā Selling PriceFace Value (FV) = value printed on share certificateMarket Value (MV) = current buying/selling price of shareDividend = (Dividend% / 100) Ć Face Value Ć number of sharesYield = (Dividend per share / Market Value) Ć 100
GST ā 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 ā Central GST (collected by Central Government) = half the GST rate
- SGST ā State GST (collected by State Government) = half the GST rate
- IGST ā Integrated GST (for inter-state transactions) = full GST rate
Practice Set 4.1 ā GST Solutions
Q: A trader buys goods worth ā¹50,000 at 12% GST and sells them for ā¹65,000 at 12% GST. Find the GST paid to the government.
Step 1: Input GST (paid while buying): 12% of ā¹50,000 = ā¹6,000
Step 2: Output GST (collected while selling): 12% of ā¹65,000 = ā¹7,800
Step 3: GST payable to government = Output GST ā Input GST
Step 4: = ā¹7,800 ā ā¹6,000 = ā¹1,800
ā Answer: GST paid to government = ā¹1,800
Q: A mobile phone costs ā¹25,000 (before GST). If GST rate is 18%, find CGST, SGST, and final price.
Step 1: Total GST = 18% of ā¹25,000 = ā¹4,500
Step 2: CGST = 9% of ā¹25,000 = ā¹2,250
Step 3: SGST = 9% of ā¹25,000 = ā¹2,250
Step 4: Final price = ā¹25,000 + ā¹4,500 = ā¹29,500
ā Answer: CGST = ā¹2,250, SGST = ā¹2,250, Final Price = ā¹29,500
Q: An AC costs ā¹35,000 excluding GST. GST rate is 28%. Find the price a customer pays.
Step 1: GST amount = 28% of ā¹35,000 = ā¹9,800
Step 2: Customer’s price = ā¹35,000 + ā¹9,800 = ā¹44,800
ā Answer: Customer pays ā¹44,800
Q: A washing machine has MRP ā¹28,000. A shopkeeper gives 10% discount. GST rate is 12%. Find the price paid by customer.
Step 1: Discount = 10% of ā¹28,000 = ā¹2,800
Step 2: Selling price after discount = ā¹28,000 ā ā¹2,800 = ā¹25,200
Step 3: GST on selling price = 12% of ā¹25,200 = ā¹3,024
Step 4: Final price paid = ā¹25,200 + ā¹3,024 = ā¹28,224
ā Answer: Customer pays ā¹28,224
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.
š¢ Income Tax Key Terms
Gross Income = Total income from all sourcesNet Taxable Income = Gross Income ā Exemptions ā DeductionsTax slab 2024: Up to ā¹3L = nil; ā¹3Lā6L = 5%; ā¹6Lā9L = 10%; ā¹9Lā12L = 15%; ā¹12Lā15L = 20%; above ā¹15L = 30%Education Cess = 4% of total income taxTotal tax = Income tax + Education Cess
Practice Set 4.2 ā Income Tax Solutions
Q: Mr. Shah’s annual income is ā¹7,50,000. He has deductions of ā¹1,50,000 under Section 80C. Calculate income tax (using old slab). Old slab: up to ā¹2.5L: nil; ā¹2.5Lā5L: 5%; ā¹5Lā7.5L: 10%
Step 1: Taxable income = ā¹7,50,000 ā ā¹1,50,000 = ā¹6,00,000
Step 2: Tax on first ā¹2,50,000 = nil
Step 3: Tax on next ā¹2,50,000 (ā¹2.5L to ā¹5L) = 5% of ā¹2,50,000 = ā¹12,500
Step 4: Tax on next ā¹1,00,000 (ā¹5L to ā¹6L) = 10% of ā¹1,00,000 = ā¹10,000
Step 5: Total income tax = ā¹12,500 + ā¹10,000 = ā¹22,500
Step 6: Education Cess = 4% of ā¹22,500 = ā¹900
Step 7: Total tax payable = ā¹22,500 + ā¹900 = ā¹23,400
ā Answer: Total Income Tax payable = ā¹23,400
Q: Ms. Joshi earns ā¹5,20,000 per year. She invests ā¹80,000 in PPF. Standard deduction: ā¹50,000. Calculate her income tax (5% on ā¹2.5Lā5L slab).
Step 1: Gross income = ā¹5,20,000
Step 2: Deductions: Standard ā¹50,000 + PPF ā¹80,000 = ā¹1,30,000
Step 3: Taxable income = ā¹5,20,000 ā ā¹1,30,000 = ā¹3,90,000
Step 4: Tax on first ā¹2,50,000 = nil
Step 5: Tax on ā¹1,40,000 (ā¹2.5L to ā¹3.9L) at 5% = ā¹7,000
Step 6: Education Cess = 4% of ā¹7,000 = ā¹280
Step 7: Total tax = ā¹7,000 + ā¹280 = ā¹7,280
ā Answer: Income Tax payable = ā¹7,280
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 ā Shares and Dividends
Q: A man buys 200 shares of face value ā¹10 each at a premium of ā¹5. Company declares 20% dividend. Find his annual dividend and yield.
Step 1: Face value (FV) = ā¹10 per share
Step 2: Market value (MV) = ā¹10 + ā¹5 = ā¹15 per share
Step 3: Total investment = 200 Ć ā¹15 = ā¹3,000
Step 4: Dividend per share = 20% of FV = 20% of ā¹10 = ā¹2
Step 5: Total dividend = 200 Ć ā¹2 = ā¹400
Step 6: Yield = (Dividend / Investment) Ć 100 = (400/3000) Ć 100 = 13.33%
ā Answer: Annual dividend = ā¹400, Yield ā 13.33%
Q: A person invests ā¹12,000 in shares of FV ā¹10 at a market value of ā¹20. Company declares 15% dividend. Calculate the income and return on investment.
Step 1: Number of shares = ā¹12,000 / ā¹20 = 600 shares
Step 2: Dividend per share = 15% of ā¹10 = ā¹1.50
Step 3: Total dividend income = 600 Ć ā¹1.50 = ā¹900
Step 4: Return on investment = (900/12000) Ć 100 = 7.5%
ā Answer: Dividend income = ā¹900, ROI = 7.5%
Practice Set 4.4 ā Banking and Loans (EMI)
š¢ Banking Formulas
Simple Interest (SI) = P Ć R Ć T / 100Compound Interest: A = P(1 + R/100)āæEMI = [P Ć r Ć (1+r)āæ] / [(1+r)āæ ā 1] where r = monthly rateTotal interest in loan = (EMI Ć n) ā Principal
Q: A person takes a loan of ā¹2,00,000 at 12% per annum for 2 years. Calculate simple interest and total amount.
Step 1: P = ā¹2,00,000, R = 12%, T = 2 years
Step 2: SI = (2,00,000 Ć 12 Ć 2) / 100 = ā¹48,000
Step 3: Total amount = ā¹2,00,000 + ā¹48,000 = ā¹2,48,000
ā Answer: Simple Interest = ā¹48,000, Total Amount = ā¹2,48,000
Q: Ravi deposits ā¹1,000 every month in a recurring deposit at 8% per annum for 2 years. Find the maturity amount. (For SSC: use formula Maturity = nĆP + SI on each installment)
Step 1: Monthly deposit P = ā¹1,000, Rate = 8%pa, n = 24 months
Step 2: Total principal = 24 Ć 1000 = ā¹24,000
Step 3: Interest = P Ć n(n+1)/2 Ć R/(12Ć100) = 1000 Ć 24Ć25/2 Ć 8/1200
Step 4: = 1000 Ć 300 Ć 8/1200 = 1000 Ć 2 = ā¹2,000
Step 5: Maturity amount = ā¹24,000 + ā¹2,000 = ā¹26,000
ā Answer: Maturity amount = ā¹26,000
Important Terms Glossary
| Term | Meaning |
|---|---|
| GST | Goods and Services Tax ā 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 Ć· market price Ć 100) |
| EMI | Equated Monthly Instalment ā 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 ā 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 ā¹10 or ā¹100). 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 ā¹1,50,000 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.
š Related: ā Chapter 3: Arithmetic Progression | Chapter 5: Probability ā | Class 10 Maths All Chapters