A Study of Financial Satisfaction and Tax Policy Awareness Among Management Students

1552 International Journal of Advance and Applied Research www.ijaar.co.in ISSN – 2347-7075 Impact Factor – 7.328 Peer Reviewed Bi-Monthly Vol.11 No.4 March – April 2024 A Study of Financial Satisfaction and Tax Policy Awareness Among Management Students Dr. Shubhangi Vijaykumar Kulkarni Assistant Professor & Head, Department of Business Administration (BBA), Sangamner Nagarpalika Arts, D.J. Malpani Commerce and B.N. Sarda Science College (Autonomous), Sangamner. Corresponding Author - Dr. Shubhangi Vijaykumar Kulkarni DOI - 10.5281/zenodo.17825861 Abstract: Financial satisfaction and awareness of tax policies are essential components of responsible financial behavior, especially among future professionals pursuing management education. This study examines the level of financial satisfaction and tax policy awareness among management students, highlighting their understanding of income tax provisions, recent tax reforms, financial planning behavior, and perceived preparedness to handle personal taxation. Using a descriptive research design and survey method, data were collected from management students across selected institutions. The findings reveal that although students possess moderate awareness of basic tax concepts, their understanding of practical tax applications, deductions, exemptions, and recent policy changes remains limited. Financial satisfaction also varies significantly depending on students’ income sources, budgeting habits, and financial literacy. The study suggests the need for improved tax education, integration of personal finance modules in management curricula, and practical training workshops to enhance financial decision-making and tax compliance behavior. Overall, the research emphasizes strengthening financial literacy and tax knowledge to cultivate financially responsible and tax-compliant future managers. Key Notes: o Financial satisfaction o Tax knowledge and awareness o Awareness of 2025 tax reforms (if included) o Saving and budgeting habits o Income sources Introduction: Financial literacy and tax awareness have become crucial skills for every individual in a rapidly evolving economic environment. Management students, in particular, represent a segment that will soon enter the corporate world, where financial decision-making and compliance with taxation laws are integral. Despite this, several studies indicate that young adults often lack adequate knowledge about tax provisions, tax filing procedures, and personal finance planning. This affects not only their financial satisfaction but also their ability to make informed future financial choices. Tax IJAAR Vol.11 No.4 ISSN – 2347-7075 Dr. Shubhangi Vijaykumar Kulkarni 1553 policy in India has undergone significant reforms in recent years, including changes in income tax slabs, digitalization of tax filing, widening of the taxpayer base, promotion of transparency, and simplification measures introduced by the government. As future managers, students must possess a clear understanding of these policies to ensure compliance and make beneficial financial decisions. Thus, examining their awareness levels becomes an essential research domain. Financial satisfaction is another important dimension that reflects how students perceive their current financial condition, ability to manage expenses, savings habits, and long-term financial planning. Although management students study finance and economics, their personal financial situations may vary depending on income sources such as stipends, part-time jobs, family support, or scholarships. Understanding the link between awareness of tax policies and financial satisfaction can help institutions design relevant training modules. Need of the Study: In the era of increasing financial responsibilities and government emphasis on tax compliance, young adults must be equipped with practical tax knowledge. However, management curricula often focus more on theoretical financial concepts rather than personal taxation and financial well-being. Studying the awareness levels of management students helps in identifying gaps in finance-related education. It also highlights whether financial satisfaction is correlated with knowledge about taxation and financial planning. This research is necessary to guide academic institutions, policymakers, and students toward strengthening financial literacy. Importance of the Study:  Helps assess whether management students are financially prepared for their professional life.  Evaluates awareness of tax policies and recent reforms among future managers.  Identifies gaps in practical financial knowledge, particularly tax filing and planning.  Supports academic institutions in designing relevant finance-training programs.  Enhances understanding of factors affecting financial satisfaction in student communities. Scope of the Study: The study is limited to management students pursuing BBA, MBA, B.Com (Management), and PGDM programs in selected institutions. It covers:  Awareness of tax concepts  Understanding of tax reforms  Knowledge of deductions, exemptions, filing procedures  Financial satisfaction levels  Budgeting, savings, and personal finance habits The study does not deeply analyze corporate tax policies or advanced accounting rules. Definitions of Key Concepts:  Financial Satisfaction: A subjective evaluation of one’s financial well- IJAAR Vol.11 No.4 ISSN – 2347-7075 Dr. Shubhangi Vijaykumar Kulkarni 1554 being based on income, expenses, savings, and financial security.  Tax Policy Awareness: Understanding of government tax laws, exemptions, reforms, and processes related to income tax compliance.  Management Students: Individuals enrolled in management-related undergraduate or postgraduate programs. Objectives of the Study: 1. To assess the level of financial satisfaction among management students. 2. To evaluate the awareness of tax policies and recent tax reforms among management students. 3. To study the financial habits of students regarding budgeting, saving, and spending. 4. To analyze the relationship between financial satisfaction and tax awareness. Research Methodology: 1. Research Design: The research design used for the study is crosssectional research design. 2. Area of the Study: The survey was conducted among 100 Management Students. 3. Research Instrument: Being a survey method, questionnaire was used as a research instrument. 4. Sample Size: The sample size for the present study was, Management Students – 100 5. Sampling Technique: The sampling method used was convenience sampling method. Data Analysis and Interpretation: IJAAR Vol.11 No.4 ISSN – 2347-7075 Dr. Shubhangi Vijaykumar Kulkarni 1555 Interpretation: 1. Majority are in Agree/Neutral. About 50% (SA + A) indicate moderate-to-good satisfaction but 25% (D + SD) show dissatisfaction — so financial satisfaction is mixed/moderate. 2. Responses center around Neutral/Agree; only 40% (SA + A) show clear awareness. This points to limited basic tax awareness. 3. The mean below 3 and higher Neutral/Disagree/SD counts show low awareness of recent tax reforms among students. 4. Highest mean among practical habits — 60% (SA + A) indicate regular budgeting. Budgeting practice is comparatively stronger. 5. Majority save at least sometimes; still a non-trivial group is not consistent. 6. Many are neutral or lack confidence; only 40% feel confident (SA + A), so practical tax compliance skills are limited. 7. Around 44% (SA + A) say tax knowledge influences decisions — suggests some link but not strong across the whole sample. 8. Very high agreement — 75% (SA + A) strongly want formal training. This is the clearest actionable result. Key Findings:  Financial satisfaction is moderate (Mean - 3.30). Many students feel reasonably satisfied, but a meaningful minority (25%) report dissatisfaction.  Basic tax concepts: moderate awareness (40% SA/A).  Recent tax reforms: awareness is low (Mean 2.91). Confidence in filing returns is also limited (Mean 3.12). Overall, practical tax knowledge and reform awareness are insufficient.  Budgeting is comparatively strong (Mean 3.52) saving is moderate (Mean 3.39). So students have some personal finance habits but could be better.  Self-reported influence of tax knowledge on decisions is moderate (Mean 3.20). Combined with other results, it appears better tax knowledge correlates with higher self-reported financial confidence/satisfaction, but the data here are descriptive — you would need correlation test (Pearson/Spearman) to confirm statistical significance. Suggestions: Integrate a compulsory short module on personal taxation and financial planning into management programs (cover basics: TDS, deductions, filing process, tax-saving investments, and recent reforms). Rationale: Q8 (75% SA/A) supports this strongly. 1. Run hands-on workshops each semester with practical exercises: IJAAR Vol.11 No.4 ISSN – 2347-7075 Dr. Shubhangi Vijaykumar Kulkarni 1556 filling sample e-returns, tax-saving investment planning, and case studies. Rationale: low confidence in filing (Q6) and low reforms awareness (Q3). 2. Add budgeting & personal finance lab sessions — students already do some budgeting (Q4 good), so reinforce with digital tools (budget apps, spreadsheet templates). Rationale: build on existing strength. 3. Offer periodic short certification (online/offline) on 'Tax for Individuals' with a small graded assignment to boost engagement and measurable learning. 4. Use peer-led learning & placement-linked sessions: senior students who have real-job exposure can run Q&A sessions about real salary slips, TDS, Form 16, standard deduction, PF, and tax-saving options. 5. Collaboration with local tax practitioners / income-tax department outreach for seminars on recent reforms and digital filing to increase familiarity with current policy changes. 6. Measure impact: After introducing modules/workshops, run pre-post tests and measure changes in awareness, mean scores, and actual filing behavior (e.g., percentage who file returns correctly). 7. Targeted support for lowawareness students: Identify students scoring Neutral/Disagree in tax questions and provide remedial clinics before placements start. References: 1. Ali, A., & Ansari, S. (2021). Impact of financial literacy on financial satisfaction among youth. Journal of Behavioral Finance Studies, 12(3), 45–56. 2. Atkinson, A., & Messy, F. (2012). Measuring Financial Literacy: Results of the OECD/INFE Pilot Study. OECD Working Papers on Finance, Insurance and Private Pensions. 3. Bhushan, P., & Medury, Y. (2013). Financial literacy and its determinants among young employees in India. International Journal of Engineering, Business and Enterprise Applications, 4(2), 155–160. 4. Danes, S. M., & Yang, Y. (2014). Young adults’ financial capability and financial satisfaction. Journal of Family and Economic Issues, 35(1), 81–94. 5. Goyal, K., & Kumar, S. (2021). Financial literacy among students in India: A systematic review. International Journal of Management, 12(4), 23–31. 6. 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