NCERT Introduces Personal Income Tax in Class 9 Curriculum

The NCERT has made a significant addition to the Class 9 curriculum by introducing personal income tax education for the first time. This new textbook not only teaches students how to calculate income tax under the new tax regime but also emphasizes the importance of civic responsibility in tax payments. The chapter on managing personal finances provides insights into budgeting, saving, and investing, aiming to equip students with essential financial literacy skills. This initiative marks a crucial step in educating young minds about their financial responsibilities and the impact of their financial decisions on future stability.

By Sourabh Singh Oct 2, 2026, 14:36 IST

Introduction of Income Tax in NCERT Curriculum

Income Tax in NCERT: The National Council of Educational Research and Training (NCERT) has incorporated personal income tax into the Class 9 syllabus for the first time. This new textbook elucidates the slab-based method of calculating income tax for students. Importantly, the chapter focuses exclusively on the 'new tax regime' without referencing the 'old tax regime.'

Significance of Tax Payment

The textbook underscores the importance of timely and honest tax payments as a fundamental duty of every citizen. The revenue generated from taxes is essential for the nation's development.

Details of the New Textbook

**Slab-based Income Tax Calculation in the New Book**
The NCERT Class 9 textbook, titled *Understanding Society: India and Beyond – Part 2*, was launched on Tuesday, about six months into the new academic year. The first part was released in June.

According to NCERT chief Dinesh Prasad Saklani, this is the first instance where Class 9 students will learn to calculate income tax based on actual slabs under the new tax regime.

Civic Responsibility and Tax Payment

The book does not merely present tax payment as a financial obligation; it connects it to civic duty, emphasizing that paying taxes "honestly and on time" is crucial for every citizen.

Managing Personal Finances

**Managing Money Explained in the ‘Managing Your Personal Finance’ Chapter**
Information about income tax is included in the chapter titled "Managing Your Personal Finance," which begins by stating that the journey of financial management starts in childhood.

The textbook explains that effective money management goes beyond just earning; it involves making wise financial choices throughout life. This includes spending, saving, investing, risk protection, responsible borrowing, and tax payments. The financial decisions made today significantly affect future economic stability and opportunities.

Understanding the New Tax Regime

**New Tax Regime: Slabs and Calculation Steps**
The chapter features a table detailing the tax slabs under the new income tax regime and outlines the steps for calculating tax liabilities based on these slabs. It highlights that a slab-based system is utilized for income tax calculations in India, with a chart illustrating the new regime's tax slabs. Notably, the old tax regime is not discussed in this chapter.

Introduction of the New Tax Regime

**When was the new tax regime introduced?**
The new tax regime was first introduced during the Union Budget of February 2020 and became effective in the 2020-21 financial year. This regime offers lower tax rates, but taxpayers must forgo most exemptions and deductions. As of April 1, 2023, the new tax regime is the default option, meaning taxpayers are automatically placed under it unless they choose the old regime.

Key Pillars of Personal Finance

**Five key pillars of personal finance**
The chapter outlines the essential pillars of personal finance: income, budgeting, saving, investing, and 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

**Importance of early investment**
The textbook emphasizes the benefits of investing at a young age, mentioning options like fixed deposits, bonds, shares, and mutual funds. This way, Class 9 students gain foundational knowledge about personal finance, covering aspects from earning to spending, saving, investing, risk management, and tax obligations.