Lesson 4 - TAXES

Nations that to glory aspire,
Their common men should prosper,
By nurturing in every household,
An enterprising culture.

UDYAM SHASTRA- Chapter 02, Verse 01
KEY OBJECTIVES:
Reading this module and doing the students activities will enable the students to: 
  • To develop understanding about the sources of in come for Government.
  • To develop understanding about Income tax.
  • To develop understanding about various taxes.
  • To develop sense of responsibility about payment of taxes.

ENTERPRISE CONCEPTS
(Basic instruction regarding E.CONCEPTS to trainers: The trainer is requested to first read and follow the ‘Basic instructions regarding Enterprise Concepts to trainers’ and proceed further thereafter. The trainer should ask a series of leading and thought provoking questions to elicit answers from the students. These answers are expected to make the students understand these E.Concepts in their own words that they recognize and know).

Definitions of the E. CONCEPTS of the module “Taxes”

TAXES : A contribution for the support of a government required of persons, groups, or businesses within the domain of that government.

INCOME TAX: A tax levied on the annual earnings of an individual or a corporation. Income taxes are levied by the federal government and by a number of state and local governments. One set of rules applies to individual income and another to corporate income. The size and structure of an income tax is changed from time to time.

SALES TAX: A tax levied on the retail price of merchandise and collected by the government. 

OCTROI: A tax on various goods brought into a town.

SERVICE TAX: A tax levied on the sale of services that is usually calculated as a percentage of the purchase price and collected by the seller. 

IMPORT DUTY: A duty imposed on imports. 

EXPORT DUTY: A duty imposed on exports.

ENTERPRISE SKILLS:
(Basic instruction regarding E.SKILLS to trainers: The trainer is requested to first read and follow the ‘Basic instructions regarding
Enterprise Skills to trainers’ and proceed further thereafter).

The students activity is designed to clarify the CONCEPTS of the module and develop some ‘ENTERPRISE SKILLS’ (E. Skills). The E.Skills included in a module may not be exhaustive but are only indicative. E.Skills stated in modules elsewhere may
also get addressed through the activities of a module.:
RESPONSIBILITY :  ---
UNDERSTANDING : 

STUDENTS ACTIVITY:

Activity 1- The Guest Speaker

The teachers must ask leading questions in module -4 to give a concept of income for the government. The students should be told in advance that next module is based on taxes so that students get adequate time and get information from parents and others about various taxes.
If you are in the rural area also inform the students about the levy on the crops given by the farmers. Inform the students that as an encouragement for agriculture, there is no tax on the income generated from agriculture.

Penalties on non payment of taxes should also be highlighted during the discussion. The story of film Lagan may come as easy and most handy introduction for the topic. 

Instruction to Students
  • Form groups with the help of teacher.
  • Discuss the following questions in group.
  • Jointly answer the questions in work sheet.
  • After completing the activity, each group should present and share its main discussion points with the rest of the class.

In the previous activity, we saw that government provides a lot of facilities and services to all the citizens. Where does government get money to pay for all the services?

Q.1.Do your mother and father pay income tax?
        Yes      No

Q.2.Do they both pay equal tax?
        Yes      No

Q.3.Does your grand father or grand mother pay income tax?
        Yes      No

Q.4.Do you pay income tax?
        Yes      No

Q. 5. What do you understand by the word INCOME TAX? Write what ever you know about income it.
_______________________________________________________________

Q. 6. Have you heard about following taxes? Write whatever you know. Sales tax, professional tax, service tax, entertainment tax, excise, octroi, wealth tax, gift tax, road tax, import duty, export duty.

1. Sales Tax _____________________________________________________

2. Professional Tax ________________________________________________

3. Service Tax ___________________________________________________

4. Entertainment Tax ______________________________________________

5. Excise __________________________________________________

6. Octroi __________________________________________________

7. Wealth Tax ______________________________________________

8. Gift Tax _________________________________________________

9. Road Tax ________________________________________________

10. Import Duty______________________________________________

11. Export Duty _____________________________________________