Income tax enters Class 9: NCERT teaches students how to calculate tax | Personal Finance

Personal income tax has been introduced in the Class 9 curriculum, with students set to learn how to calculate tax using the new regime and why paying taxes is a civic responsibility.

 

The National Council of Educational Research and Training (NCERT) has included a detailed section on personal income tax in its new Class 9 social science textbook, “Understanding Society India and Beyond-Part 2”, according to PTI.

 

The textbook gives students the slab-wise calculation under the new income tax regime and asks them to work out tax liability using the applicable rates.

 

The move brings taxation into formal financial education at the school level, alongside topics such as budgeting, saving, investing and risk management.

  

Tax calculation enters Class 9 lessons

According to news agency PTI, NCERT chief Dinesh Prasad Saklani said students can now work through an actual slab-wise income tax calculation under the new regime. This is the first time such an exercise has been included for students of this age group.

 

The chapter, titled “Managing Your Personal Finances”, says financial management begins in childhood. It links personal finance not just with earning money but also with spending, saving, investing, protecting against risks, borrowing responsibly and paying taxes.

 

The textbook also gives a civic dimension to taxation. Paying taxes “honestly and on time” is described as an important responsibility of citizens because taxes help fund the country’s development, PTI reported.

 

The chapter explains that India uses a slab system for calculating income tax and provides a table of the tax slabs under the new regime.

 

Importantly, there is no discussion of the old tax regime in this section, according to PTI.

 

Why is only the new tax regime explained?

The focus on the new regime reflects its position as the default tax system for individual taxpayers.

 

The new income tax regime was introduced in the Union Budget in February 2020 and became applicable from the financial year 2020-21. It generally offers lower tax rates but requires taxpayers to give up most exemptions and deductions available under the old regime.

 

From April 1, 2023, the new regime became the default for individual taxpayers. This means taxpayers are placed under the new regime unless they choose the old regime, subject to the applicable rules.

 

For school students, teaching the new regime gives them an introduction to how income tax is structured without requiring them to understand the full range of deductions, exemptions and tax-saving provisions associated with the older system.

 

However, students and parents should not interpret the textbook’s focus as meaning that the old regime has been abolished. Eligible taxpayers can still choose the old regime under the prevailing tax rules.

 

Personal finance lessons go beyond tax

Income tax is only one part of the new chapter. The textbook also introduces students to the main building blocks of personal finance.

 

It identifies five broad pillars:

 

Income: Understanding earnings and where money comes from.

 

Budgeting: Planning expenses and managing available money.

 

Saving: Setting aside money for future needs.

 

Investing: Using money to build wealth over time.

 

Protection and risk management: Preparing for financial risks and uncertainties.

 

The chapter also explains the power of early investment. It introduces students to investment avenues such as fixed deposits, bonds, stocks or equity shares and mutual funds.

 

This is significant because the curriculum places investment alongside basic money management rather than treating it as a subject relevant only to adults.

 

Financial literacy starts before earning

The textbook’s approach reflects a broader idea: financial decisions do not begin when a person gets their first salary.

 

Children may not have taxable income or significant investments, but they can learn the basic concepts behind earning, spending and saving. Understanding how taxes work can also help students connect individual financial decisions with public spending and government finances.

 

The textbook was released on Tuesday, around six months after the new academic session began. Its first part was released in June, PTI reported.

 

For today’s students, the lessons could eventually become relevant when they enter the workforce and start making decisions about salary, taxes, savings, investments and borrowing.

 

The inclusion of income tax at Class 9 level therefore makes personal finance part of formal schooling at a relatively early stage, rather than leaving concepts such as taxation and investing to be learnt only after students begin earning.

 

(With inputs from PTI)