Income Tax Rules

Tax Slab

New Tax Regime (Default Option for FY 2023-24)
Income Range (₹) Tax Rate
0 - 3,00,000 Nil
3,00,001 - 6,00,000 5% of income exceeding ₹3,00,000
6,00,001 - 9,00,000 10% of income exceeding ₹6,00,000
9,00,001 - 12,00,000 15% of income exceeding ₹9,00,000
12,00,001 - 15,00,000 20% of income exceeding ₹12,00,000
Above 15,00,000 30% of income exceeding ₹15,00,000
Old Tax Regime (Optional)
Income Range (₹) Tax Rate
0 - 2,50,000 Nil
2,50,001 - 5,00,000 5% of income exceeding ₹2,50,000
5,00,001 - 10,00,000 20% of income exceeding ₹5,00,000
Above 10,00,000 30% of income exceeding ₹10,00,000
Senior Citizens Tax Slabs - New Tax Regime
Income Range (₹) Tax Rate
0 - 3,00,000 Nil
3,00,001 - 6,00,000 5% of income exceeding ₹3,00,000
6,00,001 - 9,00,000 10% of income exceeding ₹6,00,000
9,00,001 - 12,00,000 15% of income exceeding ₹9,00,000
12,00,001 - 15,00,000 20% of income exceeding ₹12,00,000
Above 15,00,000 30% of income exceeding ₹15,00,000
Senior Citizens Tax Slabs - Old Tax Regime
Income Range (₹) Tax Rate
0 - 3,00,000 Nil
3,00,001 - 5,00,000 5% of income exceeding ₹3,00,000
5,00,001 - 10,00,000 20% of income exceeding ₹5,00,000
Above 10,00,000 30% of income exceeding ₹10,00,000
Tax Calculator

Car Tax in Gujarat

Goods and Services Tax (GST)

The GST on cars in Gujarat depends on the type of vehicle:

  • Small cars (up to 4 meters in length and engine capacity less than 1,200 cc for petrol and 1,500 cc for diesel) are taxed at 28% GST.
  • Luxury cars and SUVs (with engine capacity above 1,200 cc for petrol and 1,500 cc for diesel) attract a 28% GST plus additional cess, which can range from 1% to 22% based on the engine size and cost of the car.
Road Tax

Road Tax in Gujarat is levied based on the value of the vehicle, its age, and its engine capacity. There are two types of road tax in Gujarat:

  • One-time road tax: Paid at the time of vehicle registration and is valid for a set number of years. The tax depends on the vehicle's cost and engine capacity.
  • Annual road tax: Paid yearly for the continued use of the vehicle on public roads. The tax is recalculated based on the vehicle's depreciation and value.
Registration Charges

Registration charges in Gujarat include:

  • RTO (Regional Transport Office) charges for processing the vehicle registration.
  • Number plate charges for both front and rear plates.
  • One-time registration fee based on the cost of the vehicle, which is generally 2-10% of the vehicle's value in Gujarat.
Green Tax

In Gujarat, a green tax is applicable to older vehicles (usually 15 years or older). This tax aims to encourage the scrapping of older, high-polluting vehicles. The green tax is a one-time fee that can vary based on the type of vehicle and its emissions.

Insurance Tax

Motor insurance is mandatory in Gujarat. While it is not a direct tax, the insurance premium is subject to GST at a rate of 18%. The premium must be paid to keep the vehicle legally insured and compliant with the law.

Additional Taxes for Luxury Cars

Luxury cars in Gujarat may attract additional taxes, which include:

  • Cess: A percentage of the vehicle's price based on its engine size and type. Luxury vehicles may have higher cess charges.
  • State-specific taxes: Gujarat may impose additional taxes on premium vehicles, especially if they exceed a certain price threshold.
Toll Tax

If you're driving on highways in Gujarat, you will need to pay toll charges. These charges are based on the type of vehicle, distance traveled, and specific toll plazas. Toll rates may vary for different regions within the state.

Car Tax Calculator (GUJARAT)

Tax on Jewelry (Gold, Silver, Diamond, Platinum)

GST (Goods and Services Tax)

The GST on jewelry in India varies based on the type of metal used:

  • Gold Jewelry: Gold jewelry is taxed at 3% GST on the making charges. The value of gold itself is exempt from GST.
  • Silver Jewelry: Silver jewelry also attracts 3% GST on the making charges. The value of silver itself is exempt from GST.
  • Diamond Jewelry: Diamond-studded jewelry attracts 3% GST on the making charges. Diamonds are subject to 0.25% GST.
  • Platinum Jewelry: Platinum jewelry is taxed at 3% GST on the making charges, with platinum content exempt from GST.
Taxation on Sale of Jewelry

When you sell jewelry, the following capital gains tax applies based on the holding period:

  • Short-term capital gains (STCG): If the jewelry is sold within 3 years of purchase, the gain is taxed at 20% with indexation benefits.
  • Long-term capital gains (LTCG): If the jewelry is sold after 3 years of purchase, the gain is taxed at 20% with indexation benefits.
Tax on Gold (Investment or Holding)

There is no tax on physical gold until it is sold. When gold is sold, capital gains tax applies:

  • Capital Gains Tax: Gold held for more than 3 years attracts long-term capital gains tax, taxed at 20% with indexation benefits.
Tax on Silver

Silver is also exempt from tax while held. The following tax applies on sale:

  • Capital Gains Tax: Similar to gold, silver is subject to capital gains tax when sold.
Tax on Diamonds

Diamonds have the following tax implications:

  • GST on Diamonds: Uncut and rough diamonds are taxed at 0.25%. Diamond jewelry attracts 3% GST on making charges.
  • Capital Gains Tax on Diamonds: Capital gains tax applies when diamonds are sold for a profit, similar to other precious metals and jewels.
Tax on Platinum

The tax on platinum jewelry includes:

  • GST on Platinum Jewelry: Platinum jewelry is taxed at 3% GST on the making charges, with platinum content exempt from GST.
  • Capital Gains Tax on Platinum: Like gold, platinum is subject to capital gains tax when sold, with a holding period of more than 3 years leading to long-term capital gains tax.
Additional Considerations

Here are some additional tax considerations for jewelry:

  • Customs Duty: If jewelry or precious metals are imported into India, customs duty applies. For gold, it is around 10%, and for other precious metals, it can vary.
  • Wealth Tax: There is no wealth tax currently applicable to jewelry, but it must be declared as part of your assets for tax filings.

Capital Gains Tax and Other Details

Short-Term Capital Gains (STCG) Tax

Definition: When you sell shares that you have held for less than 1 year, any profit made is considered Short-Term Capital Gains (STCG).

Tax Rate: For equity shares and equity-oriented mutual funds listed on recognized stock exchanges:

The STCG tax rate is 15% (excluding surcharge and cess).

Example: If you bought shares for ₹10,000 and sold them for ₹12,000 (a gain of ₹2,000), you will pay 15% tax on the ₹2,000 profit, which amounts to ₹300.

Long-Term Capital Gains (LTCG) Tax

Definition: When you sell shares that you have held for more than 1 year, any profit made is considered Long-Term Capital Gains (LTCG).

Tax Rate: For equity shares and equity-oriented mutual funds listed on recognized stock exchanges:

LTCG is tax-free up to ₹1 lakh in a financial year.

LTCG exceeding ₹1 lakh in a financial year is taxed at 10% without the benefit of indexation (i.e., without adjusting for inflation).

Example: If you sold shares for ₹1,50,000 after holding them for over 1 year and your profit is ₹50,000, it will be tax-free. However, if your profit exceeds ₹1 lakh, then the tax rate of 10% is applicable on the amount above ₹1 lakh.

Securities Transaction Tax (STT)

What it is: The Securities Transaction Tax (STT) is a tax applied on transactions related to the sale and purchase of shares and other securities listed on the stock exchange.

Tax Rates:

  • On the purchase of equity shares: 0.1% of the transaction value (for delivery-based transactions).
  • On the sale of equity shares: 0.1% of the transaction value (for delivery-based transactions).
  • On non-delivery transactions (Intraday trading): 0.025% on the transaction value.

STT is applicable at the time of buying and selling stocks and is deducted by the broker during the transaction.

Tax on Dividends

What it is: Dividends received from Indian companies are taxable under Income from Other Sources.

Tax Rate: If the total dividend income exceeds ₹5,000 in a financial year, the dividend income will be taxed at 10% under Section 115BBDA.

For residents, there is a tax-free threshold of ₹5,000 per year on the total dividend income.

For non-residents, the tax rate on dividends is typically 20% with applicable surcharge and cess.

Taxation of Mutual Funds

Equity Mutual Funds (more than 65% invested in equities):

  • STCG Tax: 15% if sold within 1 year.
  • LTCG Tax: Tax-free up to ₹1 lakh, and 10% tax on the amount exceeding ₹1 lakh.

Debt Mutual Funds (less than 65% invested in equities):

  • STCG Tax: Taxed as per the individual's tax slab rate if sold within 3 years.
  • LTCG Tax: Taxed at 20% with indexation if sold after 3 years.
Tax Implications for NRIs (Non-Resident Indians)

NRIs are also subject to STCG and LTCG tax.

However, NRIs are exempted from the ₹1 lakh LTCG exemption and may be subject to higher TDS rates (Tax Deducted at Source) in case of dividends, with taxation as per the DTAA (Double Taxation Avoidance Agreement) between India and the NRI's country of residence.

Tax Filing

You must report the gains/losses from stock market transactions in your Income Tax Return (ITR).

If your total capital gains exceed the exemption limits or if you trade frequently, you may be required to file an ITR.

NRI Taxes in India

Taxation for NRIs

NRIs are taxed in India on income sourced from within the country, such as salary, rental income, capital gains, and dividends. Income earned abroad is generally not taxable.

Tax Rates

The tax rates for NRIs are similar to those for residents, but NRIs may have access to Double Taxation Avoidance Agreement (DTAA) benefits to reduce their overall tax liability.

Filing Tax Returns

NRIs must ensure they file their returns on time and claim the appropriate exemptions and deductions to minimize their tax burden.

National Stock Exchange of India Limited

TDS on Fixed Deposit (FD) Interest

TDS Applicability on FD Interest

What it is: TDS (Tax Deducted at Source) is deducted on the interest income from Fixed Deposits if the interest income exceeds a certain threshold during the financial year.

Interest income is taxable under the head "Income from Other Sources" and is subject to TDS.

Threshold Limit for TDS Deduction

Threshold Limit: The threshold limit for TDS on FD interest is ₹40,000 per annum for individuals and HUFs (Hindu Undivided Families) and ₹50,000 for senior citizens (aged 60 years or above).

If the total interest income exceeds these limits, the bank or financial institution deducts TDS at the applicable rate. If the interest income is less than these limits, no TDS will be deducted.

TDS Rate on FD Interest

Individuals and HUFs: The TDS rate on FD interest is 10% if PAN (Permanent Account Number) is provided to the bank. If PAN is not provided, the rate increases to 20%.

Senior Citizens: Senior citizens (aged 60 years or above) enjoy a higher threshold limit, but the TDS rate remains the same (10%) if PAN is provided.

Non-Residents (NRIs): The TDS rate for NRIs is generally 30%, and it may be subject to DTAA (Double Taxation Avoidance Agreement) rates.

How TDS is Calculated

Calculation: TDS is calculated on the interest earned, not on the principal amount of the FD.

Example: If the interest earned from the FD in a financial year is ₹45,000, and the applicable threshold limit is ₹40,000, TDS will be deducted on ₹5,000 at the rate of 10% (for individuals with PAN), resulting in ₹500 being deducted as TDS.

TDS Certificate (Form 16A)

What it is: After deducting TDS, the bank will provide a TDS certificate (Form 16A), which shows the TDS amount deducted and deposited with the government.

The TDS certificate can be used to claim the deducted tax while filing income tax returns.

Exemption from TDS (Form 15G/15H)

What it is: If your total income (including FD interest) is below the taxable limit, you can submit Form 15G (for individuals below 60) or Form 15H (for senior citizens) to the bank to avoid TDS deduction.

These forms declare that your total income is below the taxable limit and no TDS should be deducted.

Tax Return Filing and TDS

What you need to do: If TDS is deducted on FD interest, it is still your responsibility to declare the interest income in your Income Tax Return (ITR).

If excess TDS has been deducted, you can claim a refund by filing your ITR.