NCERT introduces personal income tax and financial management in new Class 9 textbook

Students in Class 9 will now learn about personal income tax and how to calculate tax slabs as part of a revised curriculum.

Textbook Details

Released on Tuesday by the NCERT, the textbook is titled "Understanding Society India and Beyond-Part 2". This launch comes six months after the current school year began, following the release of the first part in June.

Content and Tax Slabs

NCERT Chief Dinesh Prasad Saklani stated that students can now practice real slab-wise tax calculations using the new tax regime. The chapter titled "Managing Your Personal Finances" teaches that paying taxes honestly and on time is a vital duty of every citizen that helps fund national development. The textbook features a table of tax slabs specifically under the new tax framework, along with steps to figure out tax liability, while omitting any mention of the old tax regime.

Pillars of Finance

The chapter also covers the foundational pillars of personal finance, which include income, budgeting, saving, investing, protection, and risk management. It explains the importance of early investments by listing options such as fixed deposits, bonds, stocks, and mutual funds.

Context

Financial literacy initiatives in school curriculums aim to equip young students with practical money management skills before they enter adulthood. The new tax regime, introduced in the Union Budget of February 2020, became the default system for taxpayers in April 2023.