202110248-TRIUMPH-STUDENT-WORKBOOK-SOCIAL_STUDIES-G09-PART2

CHAPTER 10- PRICES AND COST OF LIVING A. 1 2 3 4=2x3 5 6 7=5x6 Goods/services Last Last Expenditure This This Expenditure month’s month’s last month month month this month price Rs. quantity price Rs. quantity i. Rice Rs. 30 25 Kg Rs. 750 Rs. 35 25 Kg Rs. 875 ii. Dal Rs. 65 2 Kg Rs. 130 Rs. 75 2 kg Rs.150 iii. Oil Rs. 90 3 Kg Rs. 270 Rs. 95 3Kg Rs.285 iv. Onions Rs. 16 8 Kg Rs. 128 Rs. 20 8Kg Rs.160 v. Gas Rs. 390 14.5 Kg Rs. 390 Rs. 410 14.5 Kg Rs.410 cylinder Total Expenditure Rs. 1668 Total Expenditure Rs. 1880 CPI 12.70% By how much has your total expenditure changed compared to last month? Rs. 212. 4.4 Key Concepts i. Non–manual or White–Collar employees working in offices, banks, or IT companies, consume a different set of goods compared to agricultural labourers. ii. In India, inflation is generally measured on the basis of changes in WPI. iii. Various CPls are used to calculate the DA to be paid for government employees, to revise legal wage rates as part of Indian government laws and also to estimate the number of poor in India. iv. Food Inflation; since 2009, government began to estimate a new index –– Food Price Index (FPI) : Food Price Index is used to estimate rise in prices of food items called food inflation. Govern- ment has to take measures to control the rising prices. Many research studies were conducted. v. The change in the dietary pattern of people has changed considerably in such a manner that their consumption of vegetables, eggs, meat and fish increased recently. SESSION 4. HOW TO CONSTRUCT A CPI 49

SESSION 5 ROLE OF GOVERNMENT IN REGULATING PRICES 5.1 Mind Map 5.2 Improve Your Learning Reading the Text, Understanding and Interpretation Q1. Read sixth paragraph under the heading of “Role of government in regulating prices” and answer the question. How does the APM affect the government revenue? Discuss. [Refer to TB page 128 Q11] A. 1) Some essential goods prices are partly or solely subsidized by the government and sold under APM. SESSION 5. ROLE OF GOVERNMENT IN REGULATING PRICES 50

CHAPTER 10- PRICES AND COST OF LIVING 2) The government fixes the prices of essential goods and makes it mandatory for traders to sell goods at those price levels. 3) The subsidy is borne by the government, so the revenue is less. Appreciation and Sensitivity Q1. Write a letter to tehsildar on proper maintenance of public distribution system by indicating your suggestions[ Refer to [Refer to TB page 129 Q15] A. Student’s Activity 5.3 Key Concepts i. Seasonal shortage causes a price rise since the demand for these products is quite high. People wish to consume them even at a higher cost, if it is a part of their regular diet. ii. The increase in the price of raw materials led to increase in the consumer goods. iii. The general inflation –a rapid rise in Wholesale Price Index, is a great concern for industries. If the prices rise to the tune of say about 2–3 per cent every year, it is considered as good for the country. iv. The producers of goods and services want to raise their standard of living, by demanding ‘ higher prices for their products. Finally consumers have to pay a higher price. v. The benefits of the increased price will go to the workers who produce those goods; considered as good for the country. vi. Government helps farmers by procuring paddy and wheat through Food Corporation of using Minimum Support Price. vii. The prices of goods sold through Public Distribution System (PDS) are less than that of market price or subsidy is borne by the government. viii. Goods whose prices are partly or solely subsidized by the government are sold under Adminis- trative Price Mechanism. ix. The Reserve Bank of India which is an apex body for all the banks in India reduces the money circulation in the economy during the price rise. x. The government decides to reduce the money in circulation, and imposes taxes on high–income groups and on many consumer goods. xi. Whenever there is a shortage of any material, government procures from other countries, and distributes at below–market prices through government organisations such as National Agricul- tural Cooperative Marketing Federation of India Ltd (NAFED). xii. Government also uses legal mechanisms whenever traders create shortage by hoarding. SESSION 5. ROLE OF GOVERNMENT IN REGULATING PRICES 51

CHAPTER 10- PRICES AND COST OF LIVING —— CCE Based Practice Questions —— AS1-Conceptual Understanding Very Short Answer Type Questions 1. Match the following. Column A Column B i. Fixed Income a. Price Index ii. Government Employees b. Pensioners iii. Statistical device c. DA iv. Crude oil d. Rise in wholesale price index v. General inflation e. Petroleum 2. Match the following. Column A Column B i. Minimum Support Price a. Higher wages ii. Public Distribution System b. Regulate the prices of paddy wheat iii. Taxes c. Reduce money in circulation iv. Trade unions d. Effect on the living standards v. Rise in food inflation e. Ensure food security 3. Answer the following questions in one sentence. (i) How are prices of wheat regulated in the market? CHAPTER 10. PRICES AND COST OF LIVING 52

CHAPTER 10- PRICES AND COST OF LIVING (ii) Why does government make it mandatory for traders to sell their goods at prices fixed by the government? (iii) When does RBI reduce money circulated in the economy? (iv) When do governments use legal mechanisms? (v) What is a budget? 4. Fill in the blanks. (vi) The Government helps farmers by procuring paddy and wheat through Food Corporation of India using . (vii) PDS is implemented by state government with the help of . (viii) is used to estimate rise in prices of food items (called food inflation). (ix) By controlling the , the amount of money circulated in the country declines. CHAPTER 10. PRICES AND COST OF LIVING 53

CHAPTER 10- PRICES AND COST OF LIVING (x) People working in Central and State Government offices and in some organizations get an additional payment called . (xi) When the government decides to reduce the money in circulation, it imposes on high–income groups. (xii) includes all goods (capital goods and consumer goods) and changes in their wholesale rates. (xiii) The Government uses to regulate the prices of essential goods. (xiv) measures changes in prices of a few selected consumer goods at the retail price. (xv) Compressed Natural Gas and Piped Natural Gas are examples of goods whose prices are partly or solely subsidized by the government and sold under . Short Answer Type Questions 5. Answer the following questions in 3-4 sentences. (i) What do you understand by inflation? CHAPTER 10. PRICES AND COST OF LIVING 54

CHAPTER 10- PRICES AND COST OF LIVING (ii) Do you think people from your grandparents’ generations were better off as they were less affected by inflation and price rise? Give reasons for your answer. Long Answer Type Questions 6. Answer the following questions in 6-8 sentences. (i) Which groups of people are not affected by rising prices? Explain. (ii) Describe the role of government in regulation of prices. 55 CHAPTER 10. PRICES AND COST OF LIVING

CHAPTER 10- PRICES AND COST OF LIVING AS2-Reading the Text, Understanding and Interpretation Long Answer Type Questions 7. Answer the following questions in 6-8 sentences. (i) Read the given text, understand and explain its meaning. The CPIs are used to calculate the DA to be paid for government employees, to revise legal wage rates as part of Indian government laws and also to estimate the number of poor in India. Inflation is generally measured on the basis of changes in WPI. 8. Answer the following questions in 6-8 sentences. 56 (i) Read the given text and comment on it. CHAPTER 10. PRICES AND COST OF LIVING

CHAPTER 10- PRICES AND COST OF LIVING People with fixed incomes such as pensioners or daily wage earners, manual workers, small vendors, workers in small enterprises and in private low income jobs etc. are all badly affected by continuous rise in prices over a period – called inflation. AS3-Information Skills Long Answer Type Questions 9. Answer the following questions in 6-8 sentences. (i) Carry out a survey and compare how prices of any 5 basic commodities (food grains, meat, fish etc.) have changed over the last one year. CHAPTER 10. PRICES AND COST OF LIVING 57

CHAPTER 10- PRICES AND COST OF LIVING (ii) Study the graph and answer the following questions. i. Which year is considered as the base year? ii. The price of which commodity has more or less remained stable? iii. Which commodity shows the maximum fluctuation in its price? iv. The price of which commodity was stable from 2008–09 to 2009–10? CHAPTER 10. PRICES AND COST OF LIVING 58

CHAPTER 10- PRICES AND COST OF LIVING AS4-Reflection on Contemporary Issues and Questioning Short Answer Type Questions 10. Answer the following questions in 3-4 sentences. (i) Suppose you live in the city and your friend comes from a village. Discuss with him how the rising prices of goods have affected the lives of your families. AS6-Appreciation and Sensitivity Long Answer Type Questions 11. Answer the following questions in 6-8 sentences. (i) Do you think the poor are becoming poorer and the rich, richer as a result of rise in prices and inflation? CHAPTER 10. PRICES AND COST OF LIVING 59

CHAPTER 10- PRICES AND COST OF LIVING Objective Questions AS1-Conceptual Understanding 12. Choose the correct answer. (i) Who among the following are affected by rise in price? (A) Central and State government officials (B) Daily wage earners (C) Businessmen (D) Multi–millionaires (ii) What is CPI? (B) Customer Price Index (A) Consumer Price Index (C) Corporate Price Index (D) Closed Party Index (iii) What is inflation? (B) Rise in demand (A) Fall in price (C) Excess supply over demand (D) Rise in price (iv) What is PDS? (B) Public Development System (A) Price Distribution System (C) Public Development Structure (D)Public Distribution System (v) An organization through which the government distributes goods at prices lower than market prices is . (A) PDS (B) Co–operative societies (C) NAFED (D) Ration shops CHAPTER 10. PRICES AND COST OF LIVING 60

CHAPTER 10- PRICES AND COST OF LIVING (vi) is the apex body for all banks in India. (A) SBI (B) FCI (C) NABARD (D) RBI (vii) Balancing of expenditure to income is called (A) Price (B) Savings (C) Budget (D) Deposits (viii) Which of the following do not fall in the fixed income group category? (A) Pensioners (B) Businessmen (C) Manual workers (D)Small vendors (ix) Which group of people are benefitted from the Minimum Support Price? (A) Housewives (B) Farmers (C) Professionals (D) Vendors (x) The PDS scheme is implemented by . (A) Government (B) Businessmen (C) Municipalities (D) Panchayats CHAPTER 10. PRICES AND COST OF LIVING 61

11. THE GOVERNMENT BUDGET AND TAXATION SESSION 1 ROLE OF THE GOVERNMENT AND EXPENDITURE BY THE GOVERNMENT 1.1 Mind Map 1.2 Terminology 1. Annual budget: The budget presented every year in the parliament that contains the government’s revenue and expenditure for the fiscal year. 2. Black money: Income which is illegally obtained or not declared for tax purposes. SESSION 1. ROLE OF THE GOVERNMENT AND EXPENDITURE BY THE G... 62

CHAPTER 11- THE GOVERNMENT BUDGET AND TAXATION 1.3 Improve Your Learning Conceptual Understanding Q1. Why does the government need a budget? Why does the budget talk of taxes? [Refer to TB page 142 Q1] A. 1) In most modern societies, the government is responsible for a number of crucial functions. 2) In providing water, sanitation, electricity facilities the government has to play an active role. 3) For providing public facilities, subsidies etc., the government must have adequate money. 4) The annual budget presented before the Parliament by the Finance Minister gives the expected expenditure by the Government. 5) Revenues are necessary to finance the expenditures of the Government. 6) The budget talks of taxes, because taxes are the main source of revenue for the government. There are a variety of taxes collected by the government. e.g. VAT (Value Added Tax), service tax, excise duty, income tax, property tax, customs duty etc. Appreciation and Sensitivity Q1. What is the effect of black money on our economy? [Refer to TB page 142 Q10] A. The single most important effect of Black Money is loss of large money income to the government exchequer. • As we know, the money earned through agriculture is exempted from taxes. • The taxes imposed on income of people are the main source of income for the government which is used in the development of the country. • Collecting income tax is not easy for government. • Collecting tax from salaried employees is easy as tax is deducted from the source of salary. • The difficulty is collecting income tax from big business houses or the richer section of society as they hide the actual income from their different sources of income by non–maintenance of their sales or income record. • Salaried people too hide their other sources of income, trying to evade taxes. • These income which should have been taxed, but evaded them, gets accumulated and is known as “Black Money”. • This Black Money poses as a great dent in nation’s economy. The person concerned makes use of various services provided by country, to make money but refuses to pay tax by hiding the income. • Since, agricultural income is non–taxable, many incomes are shown as agricultural income and evades taxes. SESSION 1. ROLE OF THE GOVERNMENT AND EXPENDITURE BY THE G... 63

CHAPTER 11- THE GOVERNMENT BUDGET AND TAXATION • The Income Tax department does raid the factories and houses of tax–defualters but still not able to collect all information about the actual income. • Sales tax is evaded on a large scale as both the sellers and consumers, do not prefer proper bills to save few hundreds of rupees but when seen on a large scale, it amounts to crores of loss to national exchequer. 1.4 Key Concepts 1. The government has the responsibility towards protection of livelihoods. 2. In rural areas, investments on irrigation projects and agricultural extension works by the government are crucial for farming. 3. The government also helps farmers by selling fertiliser at a lower price. 4. The government provides subsidies for many products like kerosene, food grains in ration shops, LPG gas cylinders etc. 5. There are a variety of taxes that the government collects. The taxes collected constitute of the revenues of the government. 6. The government expenditures are going to be met through various revenue collections. 7. The check on the government on matters of budget is ensured through legislative control. The Parliament has to allow the government to withdraw money for its expenditures. No tax can be levied except by the authority of the law passed by the Parliament. SESSION 1. ROLE OF THE GOVERNMENT AND EXPENDITURE BY THE G... 64

SESSION 2 TAXES - DIRECT AND INDIRECT TAXES 2.1 Mind Map 2.2 Terminology 1. Value Added Tax: The indirect tax on the consumption of the goods, paid by its original producers upon the changes in goods or upon the transfer of the goods to its ultimate consumer. 2. Corporate tax: Tax to be paid on the profit of a company or factory. 3. Direct tax: That tax which is borne by the person on whom it is levied. It cannot be shifted to other person. 4. Indirect tax: Those taxes which have their primary burden or impact on one person but that person succeeds in shifting his burden on to other. 5. Income tax: A direct tax in which tax is charged on personal income of individuals. SESSION 2. TAXES - DIRECT AND INDIRECT TAXES 65

CHAPTER 11- THE GOVERNMENT BUDGET AND TAXATION 2.3 Improve Your Learning Conceptual Understanding Q1. What is the difference between income tax and excise duty? [Refer to TB page 142 Q2] A. 1) Income tax is charged on personal income of individuals. It is a direct tax. 2) It is charged only for those who earn above a certain amount. 3) This is charged as a percentage of the income earned. 4) Excise duty is charged on goods that are produced or made in factories. It is an indirect tax. 5) It is charged from the factory itself, but in reality the tax is passed on to those who buy the goods. Q2. How would VAT reduce the evasion of taxes on goods? [Refer to TB page 142 Q6] A. 1) All producers and traders will have to keep genuine record of their sales and purchases. 2) Non— payment of tax, which is very common, is expected to be more difficult. 3) The big corporates burdened by corporate tax will benefit hugely. 4) The manufacturing sector will benefit the most from VAT especially the auto industry because it depends on various ancillary units for spare parts. 5) By bringing in more accountability, the government can curb the black money and can reduce the evasion of taxes. Q3. What is the difference between the excise duty and customs duty? [Refer to TB page 142 Q7] A. 1) Excise duty is charged on goods that are produced or made in factories. 2) It is charged from the factory itself, but in reality the tax is passed on to those who buy the goods. 3) Customs duty is charged on goods when we import them from other countries. Q4. You are expected to pay tax on steel, matches, clocks, cloth, iron; a tax increase on which of these would affect the prices of other commodities the most and why? [Refer to TB page 142 Q3] A. 1) A tax increase on iron will have an effect on other commodities. 2) The prices of all goods made of iron will go up. 3) Since iron is used to make steel, the prices of all things made of steel will also go up. 4) In this way, a tax increase on iron has far reaching effects. Reading the Text, Understanding and Interpretation Q1. Read the paragraph under the heading “Direct Taxes” (Income Tax is charged only for. . . ) and answer the following: [Refer to TB page 142 Q9] SESSION 2. TAXES - DIRECT AND INDIRECT TAXES 66

CHAPTER 11- THE GOVERNMENT BUDGET AND TAXATION Why do high income earners pay more tax? A. 1) Income tax is charged on personal income of individuals. 2) Income tax is charged only for those who earn above a certain amount. 3) This is charged as a percentage of the income earned. 4) Those who earn a higher income have to pay a greater proportion of their income as tax. 2.4 Key Concepts i. Taxes are the main source of revenue for the government. VAT (Value Added Tax), service tax, excise duty, income tax, property tax, and customs are a variety of taxes collected by the government ii. The taxes can be classified into two categories ––the indirect taxes and direct taxes. iii. Indirect taxes are charged on goods and services. iv. Excise duty is charged on goods that are produced or made in factories. Excise duty is levied on manufacture of Goods. . v. The tax on services is called service tax. vi. Speed post, telephone/mobile communication, restaurants, AC class/first class train travel are some common examples of service tax. vii. Value Added Tax (VAT) on the bill refers to the sales tax, which the retailer has to pay to the government. viii. Value Added Tax system is done for both excise and sales tax. ix. Under the system of Value Added Tax (VAT), only the producer pays tax on the value added. x. There are two important direct taxes––Income Tax and Corporate Tax. xi. Companies that run factories or business have to pay corporate tax. xii. Income tax is charged on personal income of the individuals. SESSION 2. TAXES - DIRECT AND INDIRECT TAXES 67

SESSION 3 TAXATION 3.1 Mind Map 3.2 Improve Your Learning Conceptual Understanding Q1. Tax on income or tax on commodities; Which of the two affects the rich more and which affects the poor more ? Explain with reasons. [Refer to TB page 142 Q5] A. 1) The tax on income falls more heavily on the rich because it is charged only for those who earn above a certain amount and is charged as a percentage of the income earned. 2) Taxing essential goods affects the poor greatly. Rich or poor, everyone buys them but the poor spend almost all of their income on these goods. Reflection on Contemporary Issues and Questioning SESSION 3. TAXATION 68

CHAPTER 11- THE GOVERNMENT BUDGET AND TAXATION Q1. Ordinary food items, such as grain, pulses, oil are used by all. Then why is it said that imposing tax on them will have a greater effect on the poor. [Refer to TB page 142 Q4] A. 1) Grains, pulses, vegetables, cloth, kerosene, cooking oil, cooking gas etc., are essential for all. 2) Rich or poor everyone buys them but the poor spend almost all of their income on these goods. 3) Hence, the poor with low income are affected the most. Q2. What are the possible reasons for hike in bus fairs? [Refer to TB page 142 Q8] A. i. The most important reason for this is the rise in diesel prices. ii. Other reasons could be to increase the salaries of bus staff, to improve the efficiency of buses. iii. It can also be because of repairing of buses. 3.3 Key Concepts i. There can be a variety of sources of individual incomes like commercial profits, wages, salaries and pensions. ii. According to rules of income tax, those with higher incomes have to pay higher tax. iii. The major source of tax is indirect i.e. on goods and services. iv. Whether rich or poor, everyone has to pay the same amount of tax when buying something. v. Tax on income from agriculture and industry can be wrongly quoted to evade taxes. vi. Many try to escape taxes and money thus hoarded keeps on increasing. This money is “Black Money” as tax was not payed and is liable for punishment. vii. Excise duty is collected from factories, customs duty from international airports and seaport and sales tax from traders and shopkeepers. viii. It is easier for government to seize records of traders etc., for the theft of tax, compared to trace individual incomes and tax thefts. ix. Sales tax is evaded on a wide scale. Some traders, by not issuing proper bills to the customers or not entering sales in their records. They sell more and show less to avoid payment of sales tax to government. x. It is the responsibility of the buyer to ask for proper bills from these shopkeepers which will help government a lot in collection of taxes. SESSION 3. TAXATION 69

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION —— CCE Based Practice Questions —— AS1-Conceptual Understanding Very Short Answer Type Questions 1. Match the following. Column A Column B i. Tax evaders a. Imposed on profit of company ii. Corporate Tax b. Interest earned from banks c. Black money iii. Income tax d. Fertilizers, food grains, seeds etc. iv. Indirect Taxes v. Subsidies e. Goods and services 2. Match the following. Column A Column B i. Annual Budget a. Charged from the factory ii. Budget b. Expected expenditure of government iii. Excise duty c. Speed post, telephone, restaurants iv. Service tax d. Enjoys tax exemption v. Agricultural income e. Legislative control 3. Answer the following questions in one sentence. (i) What is black money? CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 70

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION (ii) What is the impact of increased tax on diesel? (iii) To whom is the burden of indirect tax passed on? (iv) Why is subsidy important in agriculture sector? (v) What does “inclusive of taxes” printed with MRP mean? 4. Fill in the blanks. . (vi) Taxes on goods and services are also called 71 CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION (vii) is charged on goods when we import them from other countries. (viii) is written alongside Maximum Retail Price (MRP) of goods. (ix) , the money on which tax should have been paid but wasn’t paid . (x) The government also pays to workers who have retired from the government. (xi) is collected from factories, similar to customs duty from international airports and seaports and sales tax from traders and shopkeepers. (xii) on your bill refers to the sales tax, which the retailer has to pay to the government. (xiii) is evaded on a wide scale. (xiv) The tax on services is called . Short Answer Type Questions 5. Answer the following questions in 3-4 sentences. (i) What are subsidies? CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 72

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION (ii) Increase in which type of taxes affect the poor section more? Why? (iii) What do you know about VAT? Long Answer Type Questions 73 6. Answer the following questions in 6-8 sentences. (i) How is the burden of taxation shifted to the consumers? CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION (ii) What do you understand by Indirect taxes? Substantiate your answer with examples. (iii) Write in detail about Direct taxes. CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 74

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION (iv) Find out from your parents the different types of taxes that are paid by them. AS2-Reading the Text, Understanding and Interpretation Short Answer Type Questions 7. Answer the following questions in 3-4 sentences. (i) Read the given text, understand and explain its meaning. We pay taxes on goods and services that we buy/consume. We have seen how the producer or the trader adds the taxes to the final prices which consumers have to pay. As the goods pass through a number of stages of production and sale, at each step the taxes are paid to the government. However, the total tax is finally passed to the consumer. CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 75

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION AS3-Information Skills Short Answer Type Questions 8. Answer the following questions in 3-4 sentences. (i) Study the pie chart and answer the following questions. Expenditure of the Government (Center and States), in 2011–12 i. What is the percentage of expenditure allocated for rural development? ii. Name the 3 major areas of expenditure. iii. In which area is the expenditure the least? CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 76

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION iv. What is the percentage of expenditure on defence? AS4-Reflection on Contemporary Issues and Questioning Short Answer Type Questions 9. Answer the following questions in 3-4 sentences. (i) You must have read in newspapers that dining out has become costlier. Can you find out the reasons behind this? CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 77

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION AS6-Appreciation and Sensitivity Long Answer Type Questions 10. Answer the following questions in 6-8 sentences. (i) Despite the efforts by the government, do you think tax evasion is still a reality? Is ignorance a major factor? Why? Recall some recent initiatives by the Government of India to check evasion. CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 78

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION Objective Questions AS1-Conceptual Understanding 11. Choose the correct answer. (i) Money paid by government to reduce the cost of certain important goods: (A) Taxes (B) Subsidies (C) Credit (D) Interest (ii) The annual budget is presented before the Parliament by the . (A) Finance Minister (B) Prime Minister (C) Industrial Minister (D) Minister of External Affairs (iii) Which taxes are charged on goods and services? (A) Direct Taxes (B) Service charge (C) Service Tax (D) Indirect Taxes (iv) Which of the following is a direct tax? (B) Service tax (A) VAT (C) Customs Duty (D) Corporate Tax (v) Who can show a lower income? (B) Teachers (A) Professionals (C) Traders (D) Factory workers CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 79

CHAPTER 11-THE GOVERNMENT BUDGET AND TAXATION (vi) Which of the following is not taxed? (A) Laptops (B) Air–conditioners (C) Cars (D) Food items (vii) Who has to pay Corporate Tax? (B) Teachers (A) Professionals (C) Companies (D) Workers (viii) Which of the following do not fall in the fixed income group category? (A) Pensioners (B) Businessmen (C) Manual workers (D) Small vendors (ix) Minimum Support Price helps which group of people? (A) Housewives (B) Farmers (C) Professionals (D) Vendors (x) What is the main source of revenue for the government? (A) Taxes (B) Loans (C) Credit (D) Subsidies CHAPTER 11. THE GOVERNMENT BUDGET AND TAXATION 80

19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS SESSION 1 FUNDAMENTAL RIGHTS 1.1 Mind Map 1.2 Terminology 1. Fundamental rights: Rights which are essential for the well being of a person are called funda- mental rights. 2. Human rights: The right that are considered universal to humanity, regardless of citizenship, residency status, ethinity, gender or other SESSION 1. FUNDAMENTAL RIGHTS 81

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 1.3 Improve Your Learning Conceptual Understanding Q1. Which of the following is not an instance of an exercise of a fundamental right? [Refer to TB page 251 Q1] i. Workers from Bihar go to Punjab to work on the farms. ii. Religious minority set up a chain of schools. iii. Men and women government employees get the same salary iv. Parents property is inherited by their children. A. Parents property is Inherited by their children. Q2. Which of the following freedoms is not available to an Indian citizen? [Refer to TB page 251 Q2] i. Freedom to criticise the government. ii. Freedom to participate in armed revolution. iii. Freedom to start a movement to change the government. iv. Freedom to oppose the central values of the Constitution. A. Freedom to participate in armed revolution. Q3. Which of these statements about the relationship between democracy and rights is more valid? Give reasons for your preference. [Refer to TB page 251 Q3] i. Every country that has democracy gives rights to its citizens. ii. Every country that gives rights to its citizen is a democracy. iii. Giving rights is good, but it is not necessary for democracy. A. I prefer the first sentence. The reasons are– a) 1. All democratic countries ensure certain rights to its citizens. 2. Rights are reasonable claims of the people. 3. Democratic governments strive to preserve equal ground for all. SESSION 1. FUNDAMENTAL RIGHTS 82

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS b) 1. During the early days of modern history, all despotic governments, granted certain rights to the people. That was done under great pressure. 2. Therefore every country that gives rights to its citizens is not democratic. c) The rights are so important that they are also expressed by many democratic countries and codified by the UNO and first place in the universal declaration of human rights. Hence it is necessary for democracy to give rights. Q4. Look through this chapter and the previous one and make a list of the six Fundamental Rights in the Constitution. [Refer to TB page 251 Q5] A. There are six fundamental rights in the Constitution. They are: i. Right to equality ii. Right to freedom iii. Right against exploitation iv. Right to freedom of religion v. Cultural and educational rights vi. Right to constitutional remedies. Reading the Text, Understanding and Interpretation Q1. Read the paragraph under the heading, ‘Abolition of Title’ and answer the following question. The awards can’t be used by the recipient as a title, why? [Refer to TB page 252 Q8] A. The constitution of India does not allow any person to possess any title, other than that of educa- tional degrees. It is considered as discrimination, under the Law of the Land. The Constitution of India doesn’t want to create a division in the society. As such, the awards, which also have a title along with that , cannot be used as a title, by the recipient. Q2. Are these restrictions on the right to freedom justified? Give reasons for your answer. [Refer to TB page 251 Q4] SESSION 1. FUNDAMENTAL RIGHTS 83

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS i. Indian citizens need permission to visit some border areas of the country for reasons of security reason. ii. Outsiders are not allowed to buy property in some areas to protect the interest of the local population. iii. The government bans the publication of a book that can go against the ruling party in the coming next election. A. 1. a) Yes, it is justifiable. b) It is the responsibility of the government to protect the life of the people. c) Border areas are high risk areas and tension always persists there. 2. a) No, not justifiable. b)People in democracy have freedom to reside in any part of India. c) Hence, this statement is against the fundamental rules. d) But, there is one clause in our Constitution itself, that we cannot buy property in the state of Jammu and Kashmir. e) So Jammu and Kashmir is an exception to the fundamental rule. 3.a) No, not justifiable. b) Democracies grant civil liberties to its citizens. c) Under civil liberties we can express our ideas through media or books. d) But generally, government bans certain books in order to avoid internal tensions. Appreciation and Sensitivity Q1. Analyse an incident you know about where the Fundamental Rights are violated. [Refer to TB page 252 Q9] A. Student Activity SESSION 1. FUNDAMENTAL RIGHTS 84

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS Note: This is a students’ activity to be conducted by teacher in a class as to incidents could be drawn by students from real life, where they came across such a case . It could be a very interesting class activity and drive the fundamental rights and its meaning across to the children in a very constructive way. 1.4 Key Concepts i. The makers of the Indian Constitution made a Constitution which would allow laws to meet the varying needs and goals of the society. ii. The concept of equal rights has been a changing one. iii. Fundamental Rights are rights which are so fundamental that they have been given a sacred place in the Constitution. iv. Fundamental Rights find a place in Part 3 of the Constitution of India. v. These rights give people a protection from oppressive governments and place a duty on the government to uphold them. vi. They are so important that if they are violated by the government, any person has a right to approach the High Court or the Supreme Court directly without going to the lower courts for relief. vii. Writ is an authority given to the court to issue directions to the government to protect and enforce any constitutional right. viii. The Right to equality, guarantees that all citizens shall be equally protected by the laws of the country, whether he or she be an ordinary citizen, a minister, government official or a small farmer. ix. Everyone is under the same law and it is called as Rule of law. x. The Social Equality does not discriminate against any citizen on grounds of religion, race, caste, sex, and place of birth. xi. The Equality of Opportunity––Constitution guarantees equality of opportunity for all citizens in matters relating to employment or appointment to any office under the state. xii. The Constitution, in no uncertain terms abolishes Untouchability and its practice in any form is forbidden. xiii. The practice of untouchability is an offence and anyone doing so is punishable by law which can even be a a jail term. xiv. The Protection of Civil Rights Act provides penalties for preventing a person from entering a place of worship or from taking water from a tank or well. xv. The British government had created an aristocratic class known as Rai Bahadurs and Khan Bahadurs in India ––all these titles were also abolished. xvi. The Right to Freedom guarantees six freedoms. xvii. Freedom of speech and expression, which enable an individual to participate in public activities. xviii. Citizens are free to express their views in many ways such as meetings, plays, paintings etc. xix. Movies are subject to review by the Censor Board in the interests of public good, morality. xx. Freedom to practise any profession or to carry on any occupation, trade or business. SESSION 1. FUNDAMENTAL RIGHTS 85

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS xxi. The Right to Life and Personal Liberty includes Protection. xxii. In 2002, the right to primary education became a part of the right to life. Government is re- sponsible to provide free and compulsory education to children from six to fourteen years . xxiii. If a person is forced to work as a bonded labourer it would also be a violation. xxiv. No child below the age of 14 shall be employed to work in any factory or mines or any other hazardous employment. xxv. All individuals are free to follow their conscience and practise any religion. xxvi. This right preserves the spirit of secularism in India. xxvii. One cannot commit a crime like infanticide in the name of religion. This is what the Preamble means when it says that India is secular. xxviii. According to the Constitution, the government does not have any religion. SESSION 1. FUNDAMENTAL RIGHTS 86

SESSION 2 SCOPE AND OTHER INSTITUTIONS AND RIGHTS 2.1 Mind Map Scope and other institutions and Rights. 2.2 Terminology 1. Litigation: The process of taking a case to a court of law so that a judgement can be made. 2. Titles: A descriptive or distinctive appellation. 3. Arbitrary: Depending on individual discretion and not by law. SESSION 2. SCOPE AND OTHER INSTITUTIONS AND RIGHTS 87

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 2.3 Improve Your Learning Conceptual Understanding Q1. Are the Fundamental Rights being violated in each of the following cases? If so, which Funda- mental Right or Rights? [Refer to TB page 251, 252 Q6] i. Suppose a person is kept in a police station for 4 days without being told which law is broken? ii. Suppose your neighbour tries to claim some of your land as her own. iii. Suppose your parents do not allow you to go to school. They make you take up a job in a match factory instead, because they cannot afford to feed you properly. iv. Suppose your brother refuses to give you the land that you have inherited from your father. A. a) i. In the first case, arresting a person without proper reason and keeping him in a police station for 4 days is against the fundamental rights. ii. ”Rights to life” and personal liberty ensures that no one can be arrested without being told the grounds for his arrest. iii. ”Hebeaus Courpus” writ protects the individuals from the arrest. b) i. Occupation of one’s land by another is not a violation of fundamental rights. ii. Right to property is a legal right. c) i. Not allowing a child to go to school is definitely violation of fundamental rights. ii. ”Right to education” is a part of “Right to life”. iii. Government is responsible for providing free and compulsory education to all the children from the age of 6 to 14 years. d) SESSION 2. SCOPE AND OTHER INSTITUTIONS AND RIGHTS 88

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS i. Refusal by your brother to give you the land that you inherited is not a violation of fundamen- tal rights. ii. Right to property is a legal right and civil courts will solve the problem. Reflection on Contemporary Issues and Questioning Q1. Suppose you are an advocate. How would you argue the case for a group of people who come to you with the following request. [Refer to TB page 252 Q7] The river in our area is getting polluted by the factories upstream. We get our drinking water from the river. People in our villages keep falling ill because of the polluted water. We complained to the government but there has been no action from their side. This is surely a violation of our Fundamental Rights. A. i. Being an advocate I would like to file a writ in the court for the interests of the public. ii. This is surely a violation of our fundamental rights. iii. Hence I argue the case in such a way that immediately a stay order would be issued to close down the factory. iv. When the government did not respond to our complaints, courts would definitely safeguard our interests. 2.4 Key Concepts i. The rights like idea of democracy, has captured the attention of people across the globe. ii. Rights are often traced to the Magna Carta of England and French Revolution where a declara- tion of rights of man and of citizens was announced. iii. Universal Declaration of Human Rights was passed by the UN General Assembly in 1948. iv. In 1993, the Government of India passed an act of legislature to protect human rights. A com- mission for human rights was set up under this law called the National Human Rights Commis- sion (NHRC). v. NHRC is vested with the authority to make an inquiry, suo motu (on its own initiative), or on a petition presented to it by a victim or any person on his / her behalf. SESSION 2. SCOPE AND OTHER INSTITUTIONS AND RIGHTS 89

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS —— CCE Based Practice Questions —— AS1-Conceptual Understanding Very Short Answer Type Questions 1. Match the following. Column A Column B i. Right against exploitation ii. Freedom to form association or unions a. Abolition of Untouchability iii. Right to freedom b. Prohibition of employment of children in factories iv. Protection of Civil Rights Act c. Freedom to assemble peacefully without v. Special provisions arms d. Cultural groups, business associations e. Scheduled castes and tribes 2. Match the following. Column B Column A a. Constitution i. Fundamental Rights b. Reasonable claims of people ii. Fundamental Duties iii. Rights c. Guaranteed by Constitution iv. Preamble d. Guarantee against every form of v. Social equality discrimination e. Cannot be enforced by the court CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 90

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 3. Answer the following questions in one sentence. (i) What are fundamental duties? (ii) What is UDHR? (iii) Why is right to assemble important? 91 (iv) What is Right to Life? (v) Why can’t ‘satipratha’ be allowed? CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 4. Fill in the blanks. (vi) The has been working to protect the basic human rights of people. (vii) The provides penalties for preventing a person from entering a place of worship. (viii) Rights are often traced to the of England. (ix) Unlike Fundamental Rights, even if a person violates , he or she cannot be taken to court. (x) Many new rights like have been included into the constitution. (xi) was passed by the UN General Assembly in 1948. (xii) A violation of the fundamental rights by the State gives people the Fundamental Right to approach the . (xiii) The Fundamental Rights provided in Constitution have been from time to time. (xiv) Movies are subject to review by the in the interest of public good, decency and morality. (xv) To make these rights meaningful to everybody, the courts under the exercise of judicial review have encouraged the people to file . CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 92

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS Short Answer Type Questions 5. Answer the following questions in 3-4 sentences. (i) What is the difference between fundamental rights and human rights? Long Answer Type Questions 6. Answer the following questions in 6-8 sentences. (i) What do you understand by social equality? Explain. (ii) What do you know about the National Human Rights Commission? Write in detail. CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 93

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS (iii) What do you understand by ‘Equal Protection of Law’? AS2-Reading the Text, Understanding and Interpretation Long Answer Type Questions 7. Answer the following questions in 6-8 sentences. (i) Read the text and comment on it. No citizen can be denied his life and liberty except by law. This means that a person’s life and personal liberty can only be disputed if that person has committed a crime. However, the right to life does not include the right to die and hence, suicide or an attempt thereof, is an offense. CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 94

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS AS3-Information Skills Long Answer Type Questions 8. Answer the following questions in 6-8 sentences. (i) Find out about the type of human rights violations that take place and prepare a list. CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 95

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS AS4-Reflection on Contemporary Issues and Questioning Short Answer Type Questions 9. Answer the following questions in 3-4 sentences. (i) How would your life have been different had there been no guarantee of fundamental rights in your country? AS6-Appreciation and Sensitivity Short Answer Type Questions 10. Answer the following questions in 3-4 sentences. (i) We talk about fundamental rights but not much is said about fundamental duties. Do you think they should run parallel to each other? Why? CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 96

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS Long Answer Type Questions 11. Answer the following questions in 6-8 sentences. (i) Do you think fundamental rights in our country have been compromised? Give reason for your answer. CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 97

CHAPTER 19- HUMAN RIGHTS AND FUNDAMENTAL RIGHTS Objective Questions AS1-Conceptual Understanding 12. Choose the correct answer. (i) Which type of government safeguards majority as well as minorities? (A) Monarchical (B) Democratic (C) Dictatorial (D) Fascist (ii) Rights have also been codified by . (A) United Nations Organization (UNO) (B) NATO (C) Directive Principles (D) League of Nations (iii) In which part of the Indian Constitution will you find the Fundamental Rights? (A) Part 2 (B) Part 5 (C) Part 8 (D) Part 3 (iv) The state cannot discriminate against and cannot mete out preferential treatment to any of the Indian citizens on the basis of their caste, creed, colour, sex, gender, religion, office or place of birth. Which Right are we talking about here? (A) Right to Freedom (B) Right against exploitation (C) Right to constitutional remedies (D) Right to Equality (v) This Right enables an individual to participate in public activities. (A) Freedom to assemble peacefully without arms (B) Freedom to form associations or unions (C)Freedom of speech and expression (D) Freedom to move freely CHAPTER 19. HUMAN RIGHTS AND FUNDAMENTAL RIGHTS 98