(+91) 8283802090Introduction
Investment means using saved money to earn returns and reduce tax liability. It involves setting aside money from present spending with the hope of gaining future financial benefits. Saving is the first step toward investment and usually includes keeping money in banks, deposits, or pension plans. Saving focuses on safety, while investment involves some risk for higher returns. The main elements of investment are return, risk, and time. This study aims to understand financial planning and forecasting for salaried employees, analyze their investment behavior, and identify the factors that influence their financial and investment decisions.
Objectives
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Safety:
Investors prefer low-risk options to protect their capital, such as fixed deposits, savings accounts, and government bonds. -
Growth:
Investment is made to increase money value over time through stocks, mutual funds, gold, or property. -
Regular Income:
Some investors choose options that provide steady income, like bank deposits and bonds. -
Tax Saving:
Certain investments are selected mainly to reduce tax liability and enjoy tax benefits. -
Liquidity:
Liquid investments allow quick conversion into cash during emergencies.
Research Design
This study uses a clear research design to guide the entire research process. The research design explains how the study collects and analyzes data to address the research problem. This study examines the financial planning practices of salaried employees and analyzes the tax-saving strategies they use under the current income tax system.
Type of Research Design
This study adopts a Descriptive Research Design along with elements of Causal (Explanatory) Research.
a. Descriptive Research Design
This research describes the financial planning and tax-saving behavior of salaried employees. The study collects primary data through structured questionnaires from salaried individuals working in different sectors. The findings highlight common saving methods, frequently used tax-saving instruments, and the impact of tax regime choices on savings.
b. Causal Research Design
This research analyzes the cause-and-effect relationship between income level, financial awareness, choice of tax regime, and tax-saving effectiveness. The study applies statistical tools such as regression analysis and ANOVA to test hypotheses and determine how factors like income and professional advice influence tax planning efficiency.
