REPORT

A MANAGEMENT THESIS
ON
“A STUDY ON THE TAX
BENEFIT SCHEME AVAILED
BY AN INDIVIDUAL”

BY
SNEHA SINHA
8NBKR012
 INTRODUCTION

1.Objective of the research



 Tax planning must always been seen

within the broader framework of
financial planning and never in
isolation.


 Tax planning should be considered a

critical part of financial planning.
individuals should take calculated
decisions and choose instruments that
give them the dual benefits of tax
reduction as well as good returns in
the long term.
 2. Nature of the research


 Nature of the research will be

conclusive research, it provides the
relevant information to help the
manager arrive at a decision. It is
design and characterized by formal
research procedure. Research
objectives are clearly stated and
information needs are explicitly
stated in the type of research.
 LITERATURE REVIEW
Survey of previous work done in


“behavioral finance investor’s

rationality”


 Purpose:
 The purpose of this thesis is to
examine if professional investors are
indicating tendencies of irrational
behavior when exposed to certain
psychological dilemmas related to the
financial world.

  Background


 The theories within Behavioral Finance

also offered a new perspective when
explaining market movements. The
market is determined by people who can
not always be considered rational in
their investment decisions, especially
not during times of financial distress.
Behavioral finance is, in essence, trying
to explain and increase understanding of
the reasoning patterns of market
participants, including the emotional
processes involved and the degree to
which they influence the decision-
making process.
 This thesis takes the perspective to
investigate the psychological impact on
investors in the financial world.
  Method
 For this thesis a quantitative method
has been used and a survey has been
conducted. Methodology about
measuring the behavioral impact on
decision making is discussed, which form
the basis of the empirical data collection.


  Conclusion
 It was found that there are indeed
tendencies that indicate that
professional investors are prone to fall
for seemingly straightforward
psychological dilemmas. These are
interesting findings as they confirm that,
within the target group, the level of
irrationality linked to psychological
  
 Data collection
 The sources of this data have been drawn from
primarily the University of Jonkoping’s library and
its database. Google scholar has also been an
important tool as much of the literature that
exists is of a scientific paper character.


 The target group

 The target group has been referred to as
professional investors, one that makes
investment decisions on behalf of someone else
(i.e. gives financial advice or manages others’
investments).This group was selected in order to
have a specified population that is clearly
defined. The reason for choosing this target
group is because they are considered most
relevant as they are, as the definition states,
responsible for others' assets and therefore have
more at stake than a private investor. Also, the
fact that they trade as a profession is of
importance, as this would imply that they should
be more resistant to psychological dilemmas.
The gaps in the existing
literature

   Survey disadvantages
 The amount of questions should also
be limited; to keep the questions
relevant is a key concept.
 One should also bear in mind that
controversial topics could make the
respondents feel uncertain; in those
cases it is very important to secure
anonymity.
 Motivational factors were of key
 PROGRESS REPORT
 Till now, the objective of the study this
includes sector of  the industry, area of
research, Description of the problem
which consists of whom this study will go
to help and what is the problem behind
the topic, Justification for the core study
this includes the reason for doing this
research, What will be the data base and
target population for this study and how
the data will be collected which is based
on primary data, analytical procedure in
this the analytical techniques which will
introduce to interrupt the data and the
sample of the questionnaire is prepared
for further survey.
