In the mahaabhaarata (महाभारत), the Paandawas had to spend a year into ajnaatawaasa (अज्ञातवास unidentified exile). Because their weapons were well known, in order to avoid identification, they hid them in a hollow of a shamii (शमी) tree. Upon completing exile on the Wijayaadashamii day, they disclosed their identities, performed a puujaa of the shamii tree and the weapons and set for a battle to protect their friend king wiraat (विराट्). Thus, it is a custom, on dasera, to worship the shamii tree and the weapons or equipments that one uses for one’s livelihood. People also worship their vehicles and other household wares. This is called Aayudhapuujaa (आयुधपूजा), aayudha meaning ‘weapon’.
Dasera is considered to be auspicious for commencing new activities like education, business, purchasing home, household goods, inaugurating shops & offices, etc. Hence, Dasera is also included among the three-and-half muhoortas (मुहूर्त auspicious moment), which means one does not need to refer to an almanac for performing any auspicious activity. The entire day in itself is auspicious.
Dasera is also believed to be the day of widyaarambhaH (विद्यारम्भः commencement of studies). Students perform puujaa of books and other educational stationary (musical instruments, in case of musicians) and teachers instruct the first lesson to them on this day. Goddess saraswatii (सरस्वती) being the presiding deity of learning, is worshipped by all students on Dasera.
In northern India, huge effigies of raawana, indrajit and kumbhakarna are set on fire commemorating raama’s historical victory over the demons.
According to another legend, Kautsa (कौत्स), a young Brahmin boy, was supposed to offer 140 million gold coins as fees to his preceptor, however he had a lot more coins with him. After paying the fees, he did not wish to retain the excess, since, for a Brahmin, knowledge was more precious than gold. He distributed the coins to residents of the city. This event is commemorated on dasera day, by people distributing the leaves of aapati आपति tree as gold coins.