B.Com Financial Literacy

Financial Literacy is a comprehensive, syllabus-aligned textbook for the University of Delhi's Value Addition Course (VAC), introduced under the National Education Policy, designed to turn financially uninitiated undergraduates into confident, capable decision-makers. Its central premise is that financial well-being is a learned discipline—not an inherited trait—and that financial literacy is, in the author's framing, the first step out of poverty and toward self-sufficiency. The book carries the reader from foundational money concepts through banking, digital payments, investing, insurance, and personal taxation, treating each as a working life skill rather than abstract theory. It pairs plain-language explanation with worked numerical illustrations, contemporary Indian examples, and hands-on exercises, functioning equally as a structured classroom text and a standalone self-study guide for first-time learners.

This book is intended for the following audience:

• Undergraduate Students of all streams taking the Financial Literacy Value Addition Course (VAC) under the NEP framework
• Beginners with No Prior Finance Background who need a plain-language, example-driven entry point
• Young Earners and Students preparing to handle real decisions—budgeting, investing, buying insurance, filing returns
• Teachers and Course Facilitators seeking a syllabus-mapped text with ready classroom activities, solved problems, and assessment material

The Present Publication is the 4th Edition, authored by Prof. (Dr) Amit Kumar Singh, with the following noteworthy features:

• [Learning Outcomes] Every chapter opens with a defined set of learning outcomes that frame what the reader will be able to do on completion
• [Simple, Lucid Text] Main text written in deliberately simple, lucid language and broken into graded headings and sub-headings for easy navigation
• [Worked Problems] Concepts taught through fully worked numerical illustrations and step-by-step solved problems—present-value and future-value computations, real-rate and post-tax return calculations, coefficient-of-variation risk ranking, portfolio return working, NAV and load-adjusted redemption sums, and side-by-side old-versus-new-regime tax computations across multiple income levels
• [Built-in Glossaries] Quick-reference glossaries of essential terms embedded where they aid comprehension, building a working financial vocabulary
• [Indian Context] Practical Indian context throughout—cited survey and research data, named government schemes, and current fraud typologies—to keep the material concrete and relevant
• [Review Questions] Review Questions at the end of each chapter for self-testing and consolidation
• [Practical Exercises] Practical Exercises in each chapter that push learning into action: building dummy stock portfolios, comparing bank and mutual-fund products online, using TVM and SIP calculators, applying Excel's PV/FV/NPER/RATE functions, filing a dummy income-tax return, and running a financial-literacy survey
• [Previous Years' Papers] A compilation of previous years' DU common question papers for exam orientation and practice

The coverage of the book is as follows:

• Foundations of Financial Literacy
• The meaning, importance, and basic vocabulary of financial literacy, and the traits of a financially literate individual
• Saving & Spending Management
• Needs versus wants, budgeting, 'pay yourself first,' and building financial discipline
• Financial Goals & Planning
• Financial goal-setting using the SMART framework, and the financial planning process, its benefits, and its necessity
• Time Value of Money
• Compounding and discounting, present and future value of single and multiple cash flows, ordinary annuities, annuities due and perpetuities, and applications such as sinking funds, loan repayment, growth-rate and deferred-payment problems
• Banking Products & Digital Payments
• Retail and corporate banking products and services and the marketing of digital banking; digitisation of financial transactions—credit, debit and prepaid cards, AEPS, net banking, fund-transfer modes, UPI and digital wallets—with a critical analysis of the strengths and weaknesses of going digital
• Financial Fraud & Security
• Protection against financial fraud—Ponzi schemes and modern online frauds including SIM cloning, QR-code scams, impersonation, and refund/'Fraud-as-a-Service' schemes, with practical security precautions
• Investment Planning & Management
• Investment versus speculation, the investment process, risk and return, measurement of risk, the risk-return trade-off, portfolio diversification, the impact of taxes on investment decisions, and the full range of investment alternatives
• Mutual Funds
• NAV, entry and exit loads, expense ratios, scheme classifications, SIP, SWP, STP, risk-o-meter, regular versus direct plans, and tax implications
• Insurance—Life, General & Health
• Principles of insurance, types of life cover (term, whole-life, ULIPs, endowment, retirement), the claim-settlement process, and non-life insurance; health insurance—indemnity versus fixed-benefit plans, government-sponsored schemes, coverage, exclusions, and what to weigh before buying
• Personal Tax Planning
• The meaning and importance of tax, types of planning, and the distinction between tax management, avoidance, and evasion
• The Indian Taxation System
• Direct and indirect taxes, GST, residential status, the five heads of income, slabs, surcharge and cess, and the old versus new regime
• Exemptions & Deductions
• Allowances during employment and at retirement, deductions under Sections 80C to 80U, and best tax-saving schemes
• E-filing of Returns    
• ITR forms and their applicability, filing modes, documentation, the e-filing process, and precautions

The book is organised into 4 units spanning 15 chapters, each unit building on the last:

• Unit 1 | Financial Planning and Financial Products (Chapters 1–4) — Lays the foundation—financial literacy and vocabulary, saving and spending management, financial goals and planning, and the time value of money
• Unit 2 | Banking and Digital Payment (Chapters 5–7) — Banking products and services, digitisation of financial transactions, and protection against banking and financial fraud
• Unit 3 | Investment Planning and Management (Chapters 8–11) — Investment planning and management, mutual funds, life and general insurance, and health insurance
• Unit 4 | Tax Planning (Chapters 12–15) — Personal tax planning, taxation in India, deductions and exemptions, and e-filing of income-tax returns
• Each chapter follows a uniform internal architecture
• Opens with learning outcomes
• Develops the subject through layered headings and sub-headings
• Supported by examples
• Provides worked illustrations and solved numerical problems where the topic is quantitative
• Closes with review questions and tool-based practical exercises

About the Author

Amit Kumar Singh

Prof. (Dr) Amit Kumar Singh is a Professor in the Department of Commerce, Faculty of Commerce and Business, Delhi School of Economics, University of Delhi. An alumnus of Kirori Mal College and the Department of Commerce, Delhi School of Economics, he is a gold medallist in the M.Com. examination of the University of Delhi, and a recipient of several medals and prizes at the postgraduate level. He completed his M.Phil. and PhD from the Department of Commerce, Delhi School of Economics.

Specialising in Finance, Investment Management, and Initial Public Offerings, he brings over 20 years of teaching experience. He has authored/co-authored eight books and has more than 100 research papers to his credit in ABDC, Scopus, and Web of Science indexed journals, alongside numerous presentations at national and international conferences. Prior to joining the Department, he taught at Shaheed Bhagat Singh College, University of Delhi, for about twelve years. He was recently conferred the Distinguished Alumni Award by Kirori Mal College.

He holds several key positions across the University of Delhi. He is the Joint Director of the Delhi School of Public Policy and Governance (DSPPG), Institute of Eminence. He is a member of the Governing Body of Miranda House and previously served as Chairman of the Governing Body of Gargi College and Treasurer of Maharishi Valmiki College of Education. He is a member of the University's Financial Literacy Committee and a coordinator in its Financial Inclusion Committee, a nodal officer of the Youth for Nation Forum, and a nominated member of the Internal Complaints Committee.

A life member of the Indian Accounting Association and the Indian Commerce Association, he has recently been elected Vice President of the Delhi Chapter of the Indian Commerce Association. He has served as coordinator for the Commerce DSC interface since 2019 and has conducted over 100 workshops and guideline meetings for B.Com. (Hons.) and B.Com. (Prog.).