From pocket money to public finance

Taxation is a fundamental part of any country’s economy. Simply put, it is the process by which the government collects money from individuals and businesses to fund public services such as education, healthcare, infrastructure, defence, and social welfare programmes. Without taxes, governments would struggle to provide the facilities and support that citizens rely on daily.

There are different types of taxes. Direct taxes, like income tax, are paid directly by individuals or organisations based on earnings or profits. Indirect taxes, such as GST (Goods and Services Tax), are applied to goods and services and are usually included in the price paid by consumers. Learning the basics of taxation helps students understand how public finances work and why it is important to contribute responsibly as citizens.

For students, understanding taxation is also practical in everyday life. Knowing about taxes can help them manage pocket money, part-time earnings, or even small business projects effectively. It also encourages financial literacy, which is essential for making informed decisions about spending, saving, and investing in the future.

According to Ritu Shivkumar, an alumna from Apeejay School, Kharghar, “A knowledge of taxation opens doors to numerous career paths. Students interested in commerce, finance, or economics can pursue professions like chartered accountants, tax consultants, auditors, financial analysts, and corporate finance managers. With globalisation and digitalisation, careers in international taxation, GST compliance, and indirect tax advisory are also in high demand. Additionally, government roles like Income Tax Officer or IRS (Indian Revenue Service) positions offer stable and rewarding career opportunities.”

“The finance and accounting sector continues to evolve with technology. Knowledge of taxation combined with skills in data analysis, accounting software, and financial planning makes students highly employable. Start-ups and businesses increasingly rely on tax experts to navigate complex regulations, creating opportunities for young professionals,” she added.