07 March, 2011

Unknown Taxes you pay for in 2011

Did you know that when you buy a car, SUV or a two-wheeler, 1% of the price you pay goes into the coffers of the National Calamity Contigency Fund? From this year on, the list includes mobile phones too.

Commonly known as road cess, this is an additional duty of excise that is levied on petrol and diesel at Rs 2 a litre. This is used for rural development and state road projects, besides being shared by the National Highways Authority of India and the railways

Too much of a good thing can be taxing (pun intended), especially if your net worth is more than Rs 30 lakh. If you have assets, such as cash, jewellery, cars, a second property, whose combined value is more than this, you will have to pay a wealth tax of 1%.

Secondary & higher education cess : Apart from education cess, this is the other surcharge levied on most taxes to better the education system in the country. This is charged at the rate of 1% on the tax payable.

Securities transaction tax : Every time you buy or sell shares on a stock exchange, a fraction of the money is deducted as securities transaction tax (STT). This tax is applicable on purchase or sale of equity shares, derivatives and equity-oriented mutual funds and is automatically charged by your broker

Luxury tax : Whenever you book a hotel room, find out the rate inclusive of all taxes. This is because hoteliers have to pay a luxury tax, which they pass on to the customers. So, on a room rate of Rs 2,000, you could end up paying Rs 300 more.

I hope this would help you avoid mis-planned expenses and rifts with the CAs @ the end of the Year.