Class 9 students to learn income tax and personal finance under new NCERT curriculum

The NCERT has introduced personal income tax in the Class 9 curriculum, along with a broader civic message that paying taxes honestly and on time is an important responsibility of citizens.

The textbook, titled “Understanding Society India and Beyond-Part 2”, was released on Tuesday, six months after the new academic session began. The first part of the textbook was released in June.

According to NCERT chief Dinesh Prasad Saklani, Class 9 students can now learn how to calculate personal income tax using the slab system under the new tax regime. The topic has been presented alongside a civic lesson that describes paying taxes “honestly and on time” as an “important responsibility of every citizen” that contributes to the country’s development.


The chapter, “Managing Your Personal Finances”, begins with the idea that financial literacy should start early. It explains that managing money is not simply about earning more, but about making informed decisions around spending, saving, investing, managing risks, borrowing and paying taxes.

“Managing money wisely is not just about earning more, it is about making careful financial decisions at every stage, whether it involves spending, saving, investing, protecting against risks, borrowing responsibly or paying taxes,” the textbook says. It adds that financial decisions made today can shape an individual’s future financial stability and ability to manage opportunities and challenges.

The chapter includes a table of income tax slabs under the new tax regime and explains the steps students can use to calculate their tax liability based on those slabs. It does not discuss the old tax regime.

“India follows a slab system for calculating income tax as shown in table,” the textbook says, before presenting the new-regime tax slabs.

When was the new tax regime introduced?

The new tax regime was introduced in the Union Budget in February 2020 and came into effect from the financial year 2020-21. It offers lower tax rates in exchange for giving up most exemptions and deductions.

The new regime became the default tax regime from April 1, 2023. Taxpayers are placed under the new regime unless they specifically choose the old regime.

What else does the chapter teach?

The chapter also introduces students to the five pillars of personal finance: income, budgeting, saving, investing, and protection and risk management.

Under “income”, students learn about earnings, while budgeting focuses on planning expenses. The sections on saving and investing explain how people can set aside money and potentially grow their wealth, while protection and risk management cover ways of preparing for financial risks.

The chapter also discusses the “power of early investments” and introduces students to options such as fixed deposits, bonds, stocks or equity shares, and mutual funds.