Grade VII Financial Literacy - Taxes, Inflation, and Capital Flashcards

A comprehensive collection of vocabulary flashcards defining key terms related to taxation, inflation mechanisms, and forms of business capital based on Grade VII Financial Literacy notes.

Direct Taxes

Taxes paid directly to the government by individuals or organizations, where the tax burden cannot be transferred to another person.

Income Tax

A direct tax paid by individuals on the money they earn if their earnings exceed a certain taxable limit.

Corporate Tax

A direct tax paid by companies on the profits they earn to ensure businesses contribute to national growth.

Capital Gains Tax

A tax paid on the profit earned from selling assets such as land or shares.

Indirect Taxes

Taxes imposed on goods and services that are collected by sellers or service providers and passed on to the government, with the burden falling on the consumer.

Goods and Services Tax (GST)

The most important indirect tax in India, introduced in 2017 to replace multiple taxes and create a single tax system known as 'One Nation, One Tax'.

Customs Duty

A tax imposed on goods imported from other countries to protect domestic industries and generate revenue for the government.

GSTIN

A unique GST Identification Number contained on every GST bill.

Digital Taxation

A modern system that allows people to pay taxes quickly and safely online using the internet, computers, and smartphones.

E-Filing

The process of submitting income tax returns online through a secure website without paper forms.

Inflation

The overall general increase in the prices of goods and services over time, which causes money to lose some of its purchasing value.

Purchasing Power

The ability of money to buy goods and services.

Cost of Living

The total amount of money required to maintain basic daily needs, such as food, housing, electricity, education, healthcare, and transport.

Demand

Refers to how much people want to buy a particular good or service.

Supply

Refers to how much of a good or service is available in the market.

Production

The process of making goods using raw materials, labour, machines, and other resources.

Demand-Pull Inflation

A type of inflation that occurs when consumer demand for goods and services increases faster than their available supply, driving prices up.

Cost-Push Inflation

A type of inflation that occurs when the cost of producing goods and services increases (such as raw materials or wages), and producers pass these higher costs on to consumers.

Capital

The money, wealth, tools, machinery, buildings, and human skills invested in a business to start operations, produce goods or services, and generate income.

Fixed Capital

Long-term assets used repeatedly in production over many years, such as land, buildings, machinery, equipment, furniture, and vehicles.

Working Capital

The money required for the day-to-day operations of a business, including wages, raw materials, electricity, rent, and transportation costs.

Human Capital

The knowledge, skills, and abilities of people, such as teachers in schools, doctors in hospitals, and engineers in industries.

Financial Capital

The monetary funds used to start, manage, and expand a business, including cash, savings, bank loans, investments, shares, and bonds.

Social Capital

The network of relationships, trust, and goodwill that supports business success, including loyal customers and reliable suppliers.

Capital Formation

The process of increasing capital through savings and investments to grow businesses, create jobs, and foster national economic growth.

Capital Management

The effective and careful use of capital to ensure a business uses its money and resources efficiently to achieve success and avoid financial problems.