NCERT: School students to understand the new tax regime; personal income tax included in the Class 9 curriculum for the first time..

Income Tax in NCERT: The National Council of Educational Research and Training (NCERT) has introduced personal income tax into the Class 9 curriculum for the first time. The new book explains the slab-based calculation of income tax to students. Notably, the chapter details income tax calculation solely under the 'new tax regime,' with no mention of the 'old tax regime.'

The book emphasizes that paying taxes honestly and on time is a crucial responsibility for every citizen. The revenue generated from this is utilized for the country's development.

**Slab-based Income Tax Calculation in the New Book**
The NCERT Class 9 textbook is titled *Understanding Society: India and Beyond – Part 2*. It was released on Tuesday, approximately six months after the start of the new academic session. The first part of the book had been released in June.

According to NCERT chief Dinesh Prasad Saklani, Class 9 students will now be able to calculate income tax based on actual slabs under the new tax regime. This marks the first time such calculations have been included in a textbook for students in this age group.

The book does not present tax payment merely as a financial procedure; it links it to civic responsibility. It states that paying taxes "honestly and on time" is a vital responsibility for every citizen.

**Managing Money Explained in the ‘Managing Your Personal Finance’ Chapter**
Information regarding income tax is provided in the chapter titled "Managing Your Personal Finance." The chapter begins by noting that the journey of managing money starts in childhood.

The book explains that proper money management is not limited to earning more; it also involves making prudent financial decisions at every stage of life. This encompasses spending, saving, investing, protection against risk, responsible borrowing, and paying taxes. According to the book, the financial decisions an individual makes today impact their future economic standing. These decisions also influence their ability to achieve financial stability and navigate economic opportunities and challenges.

**New Tax Regime: Slabs and Calculation Steps**
The chapter includes a table outlining the tax slabs under the new income tax regime.
It further explains the steps for calculating tax liability based on these slabs.
The book notes that a slab-based system is used for calculating income tax in India.
A chart detailing the income tax slabs under the new regime follows.
Notably, the old tax regime is not mentioned in this chapter.

**When was the new tax regime introduced?**
The new tax regime was first introduced in India during the Union Budget of February 2020 and came into effect in the 2020-21 financial year.
The new regime offers comparatively lower tax rates; in exchange, taxpayers must forgo most exemptions and deductions.
From April 1, 2023, the new tax regime became the default option.
This means taxpayers are automatically placed under the new regime unless they specifically opt for the old one.

**Five key pillars of personal finance**
The chapter also outlines the pillars of personal finance: income, budgeting, saving, investing, and protection & risk management.

**Income:** Earnings
**Budgeting:** Planning expenses
**Saving:** Setting aside money for the future
**Investing:** Growing wealth
**Protection and Risk Management:** Safeguarding against financial risks

**Importance of early investment**
The book also highlights the power of investing at a young age. Fixed deposits, bonds, shares, and mutual funds have been mentioned as investment options.
In this way, Class 9 students have been provided with basic information regarding personal finance—covering everything from earning to spending, saving, investing, risk management, and tax payment.

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