Class 10 Maths - MAHARASHTRA
Financial Planning
The 'Financial Planning' chapter in Maharashtra State Board (MSBSHSE) Class 10 Mathematics introduces students to practical commercial mathematics. It covers essential everyday financial concepts including Goods and Services Tax (GST), calculation of Input Tax Credit (ITC), and management of shares, mutual funds, and brokerage. Students learn how to compute tax invoices, understand trading of shares on the stock exchange, and calculate dividends and returns on investments. This chapter is vital for board exams as it features straightforward word problems that test real-world calculation skills, making it a high-scoring area with consistent weightage in the board question paper.
Start Learning FreeKey Concepts
Goods and Services Tax (GST)
An indirect tax levied on the supply of goods and services across India, divided equally into Central GST (CGST) and State GST (SGST).
Input Tax Credit (ITC)
The tax a businessman pays on purchase (input) that can be deducted from the tax collected on sales (output) while paying GST to the government.
Face Value (FV) and Market Value (MV)
Face Value is the printed value of a share on the share certificate, while Market Value is the price at which the share is actually bought or sold in the stock market.
Brokerage and GST on Brokerage
Brokerage is the commission charged by a registered broker for buying or selling shares, and 18% GST is additionally levied on this brokerage amount.
Mutual Funds and SIP
A professionally managed investment scheme pooling money from multiple investors to buy securities, with SIP allowing systematic periodic investments.
Important Formulas
Board Exam Info
In the Maharashtra (MSBSHSE) Class 10 Mathematics Part-1 board exam, Financial Planning typically carries around 8 to 10 marks including optional questions. Common question types include calculating CGST, SGST, and net GST payable via ITC, finding the total amount paid or received during share transactions involving brokerage and GST, and calculating the rate of return on investments.
Frequently Asked Questions
What is the difference between CGST and SGST?
CGST is collected by the Central Government for intra-state supply of goods and services, while SGST is collected by the State Government. Both are charged at equal rates.
How do I know whether to add or subtract brokerage from Market Value?
When you are buying shares, brokerage and GST on brokerage are added to the Market Value because you pay extra. When selling shares, they are subtracted because they are deducted from your earnings.
Is Face Value always equal to Market Value?
No. Face Value is fixed at the time of issue, but Market Value fluctuates daily based on demand and supply in the stock market. It can be higher (at premium), lower (at discount), or equal (at par) to the Face Value.
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