Over the recent years, taxation literacy has become a major area of concern for governments, banks, community service groups, other similar organizations, and people in India. People largely lack basic knowledge about financial matters, required to take household decisions, day-to-day money management as well as saving for the long term. Taxation literacy is defined as the knowledge which an individual should possess to manage the issues concerning personal taxation effectively. It helps the individuals in assessing their tax liability, tax management, and tax planning too. Lack of financial and taxation literacy often makes people vulnerable to a financial crisis. It also adversely affects market operations and competitive forces. On the other hand, people who are well informed and well knowledgeable can help to create a more competitive and more efficient financial and tax planning system. The basic purpose of this study is to determine the relationship between financial and taxation literacy among the people, the impact of various government awareness programs on salaried individuals. An illiterate person may arise issues related to tax evasion which is illegal in Indian perspectives. Descriptive type of research will be used to describe the meaning of taxation literacy and review various research papers. Data will be collected from secondary sources. The later section of this review paper observes the views of the different researchers on taxation literacy and will give valued suggestions and future viewpoints on the same.