GOVERNMENT VEHICLE TAX RULES IN 2025

 1. Central Level

GST & Compensation Cess

.GST on new vehicles: 28% base rate, plus compensation cess based on engine size:

.Small cars (<1200 cc): +1%

.1200–1500 cc: +3%

.1500 cc / SUVs: +15–22% 

.Electric Vehicles (EVs): taxed at 5% GST, no cess

GST on Used Vehicles

.Small petrol/diesel cars: 12% GST

.Larger petrol/diesel cars: 18%

.Used EVs: 5% GST, no cess

 2. Road & Registration Tax (State-wise)

.State governments levy a one-time road tax (mostly for private vehicles) at registration.

State	Petrol/Diesel Car Tax (approx)	EV / Hybrid Treatment
Maharashtra	11% (<₹10L), 13% (>₹10L), +2% on diesel	100% exemption on registration & road tax; toll-free expressways
Karnataka	~13–18% (based on price)	EVs mostly exempt (0%) + diesel surcharge
Delhi	10% (<₹10L), 12.5% (>₹10L); diesel discouraged	EVs & hybrids up to ₹20L exempt road tax & registration
UP	8–10%, +2% diesel surcharge	100% waiver on EV/hybrid road tax & registration
Gujarat	6% (<₹10L), ~12% (>₹10L); diesel premium	EVs taxed at just 1% until Mar 2026
West Bengal	10% (<₹10L), 13% (>₹10L); +2% diesel	Partial EV benefits
Tamil Nadu	+	Luxury tax hike to 20% on cars >₹20L—sales dropped by 18%
Madhya Pradesh	Luxury vehicles taxed at 16%; EV two-wheeler tax rose from 1% to 4%
Kerala	—	EVs ≤₹15 L: 5%, ₹15‑20 L: 8%, >₹20 L: 10%

Note: Private cars typically pay one-time road tax, valid for up to 15 years; commercial vehicles pay yearly/quarterly .

 3. EV & Hybrid Incentives

.Maharashtra: EV registration & road tax exempt; toll-free on major expressways for 5 years; up to ₹2 lakh incentive on commercial EVs 

.UP: Subsidies: ₹5K (2-w), ₹12K (3-w), ₹1L (cars); full tax waiver 

.Delhi-NCR: Extends EV/hybrid tax waiver for vehicles ≤₹20L 

.Gujarat: 1% EV road tax through March 2026 

 4. Toll & FASTAG Updates

.Two-wheelers remain toll-exempt on national highways 

.FASTAG annual pass (₹3000) starting 15 Aug 2025: ~200 trips or unlimited for cars/vans; delivers up to 70% saving 

.Maharashtra EVs get toll waiver across major expressways 

 5. What This Means for You

.EV Advantage: Across most states, EVs enjoy zero or minimal taxes, often with toll waivers and subsidies.

.Hybrids: Delhi, UP now include hybrids under EV tax benefits—watch for expansion.

.Diesel Premium: Diesel vehicles see an extra ~2% surcharge almost everywhere.

.Luxury Car Buyers: States like Tamil Nadu & MP impose hefty taxes (16–20%); some buyers register elsewhere to avoid the levy 

.Consumers: With the GST Council moving toward integrating cess by FY27, expect simplification in tax rates 

📌 Bottom Line

Buying a Diesel or Luxury Car?

Expect higher taxes, diesel surcharges, and fewer incentives:

• Diesel Surcharge: +2% in states like UP, WB, Maharashtra.

• Luxury Tax:

  • Tamil Nadu: 20% for vehicles >₹20L

  • MP: 16% road tax on high-end cars

Tip: Some buyers register in lower-tax states (e.g., Gujarat) to save lakhs—but check legality carefully.

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Commuting Cost-Efficiently?

New Toll Benefit in 2025:

• FASTAG Annual Pass @ ₹3,000

  • Launch: From August 15, 2025

  • Covers: 200 highway trips or unlimited access (passenger cars, vans)

  • Savings: Up to ₹10,000/year for frequent commuters

Bonus: EVs in Maharashtra get 100% toll waiver on expressways like Atal Setu.

How Governments Tax (General Process)

       🏛️ How Governments Tax (General Process)

Governments impose taxes to fund public services (like roads, healthcare, education, defense, etc.). The process generally involves:

1. Creating Tax Laws

.Parliament or Legislature passes laws defining:
.Who must pay (individuals, companies, etc.)
.What is taxed (income, goods, property, etc.)
.How much is taxed (rates, slabs, exemptions)

.Indian Constitution defines who can levy which tax:

.Union (Central) Government: Income Tax, Corporate Tax, Customs, GST (CGST), etc.

.State Governments: State GST (SGST), Excise (on liquor), Stamp Duty, etc.

.Local Bodies: Property tax, water tax, etc.

2. Types of Taxes

.Direct Taxes: Paid directly to the government.
.Examples: Income Tax, Corporate Tax, Wealth Tax.
.Indirect Taxes: Collected via goods/services.

Tax Type	Who Pays	Governing Body
Income Tax	Individuals, HUFs, firms, etc.	CBDT
Corporate Tax	Companies on profits	CBDT
Minimum Alternate Tax (MAT)	Companies with book profits but no income tax liability	CBDT
Capital Gains Tax	On profit from sale of assets	CBDT
Securities Transaction Tax (STT)	On stock trading profits	CBDT

Examples: GST (Goods & Services Tax), VAT, Excise Duty

.How Individuals Pay Tax (Income Tax Example – India, 2025)

Step-by-Step:

.1Check if You Are Required to Pay Tax

.If your income is above ₹2.5 lakh/year (for FY 2024-25 under old regime), you must file a tax return.
.Slabs vary under new vs. old regime.

.Salary / pension

.Interest (FD, savings, etc.)

.Rent / house property

.Freelancing / business

.Capital gains (stocks, mutual funds, property)

.3Calculate Your Total Income

.Include:
.Salary
.Business income
.Rental income
.Capital gains
.Other sources (FDs, dividends)

Head of Income     Examples

1. Salary           Basic salary, DA, bonus, allowances, perquisites

2. House Property   Rent received, deemed rent, home loan interest

3. Business/Profession   Freelance income, business profits

4. Capital Gains   Sale of shares, mutual funds, real estate, gold

.3Claim Deductions & Exemptions

.Common deductions under Section 80C (like LIC, PPF)
.Medical insurance (80D), education loan interest (80E), etc.

Common Deductions under Chapter VI-A (Old Regime)

Section Deduction Type Max Limit Notes

80C Investments in LIC, PPF, EPF, ELSS, NSC, principal on home loan, tuition fees ₹1.5 lakh Most widely used

80CCC Pension funds (e.g., LIC Jeevan Suraksha) ₹1.5 lakh Part of 80C total

80CCD(1B) NPS (additional) ₹50,000 Over and above 80C

80D Medical insurance premium ₹25,000 (self/family)

₹50,000 (senior citizen) Includes preventive health check-up (₹5,000)

80DD Disabled dependent ₹75,000–₹1.25 lakh Disability certificate required

80DDB Medical treatment for specified diseases ₹40,000–₹1 lakh For self/dependents

80E Interest on education loan No Limit (8 years) Only interest is deductible

80EE First-time home buyer interest deduction ₹50,000/year Loan ≤ ₹35 lakh

80EEA Affordable housing interest deduction ₹1.5 lakh Property ≤ ₹45 lakh (for loans sanctioned before Mar 2022)

80G Donations to charitable institutions 50% or 100% with/without limit PAN of trust needed

80GG House rent paid (if no HRA received) Up to ₹60,000/year For self-employed or no HRA in salary

80TTA/TTB Interest on savings (SB) account ₹10,000 (80TTA, <60 yrs)

₹50,000 (80TTB, >60 yrs) Not for FDs

24(b) Home loan interest (self-occupied property) ₹2 lakh/year Under "Income from House Property"

.4Compute Tax Liability

.Use income tax slabs.

.Apply rebates (e.g., Section 87A) and cress.

.Salary (Basic, HRA, bonus, etc.)

.House Property (rent received or loss from home loan interest)

.Capital Gains (from shares, property, etc.)

.Other Sources (FD interest, dividends, etc.)

.5Pay Advance Tax / Self-Assessment Tax

.If tax is due (after TDS), pay it online via the Income Tax portal.

When to Pay Advance Tax (Due Dates & Installments)

For Individuals & Businesses (Non-Corporates):

Due Date	% of Tax Payable
15th June	15%
15th September	45% (cumulative)
15th December	75% (cumulative)
15th March	100%

.6File Income Tax Return (ITR)

.File annually (usually by 31 July) through:
.https://www.incometax.gov.in

Step-by-Step Guide:

1. Go to:

 https://www.incometax.gov.in

2.✅ Login with your PAN and password

(or click ‘e-Pay Tax’ if you’re not registered)

3. Navigate to:

e-File → e-Pay Tax

4. Click "New Payment"

5.Select:

    .Assessment Year: 2025–26 (for FY 2024–25)

    .Type of Payment:

    .Advance Tax (100) if paying in installments

    .Self-Assessment Tax (300) if after year-end

6. Choose your bank and payment mode

(Net banking, Debit card, UPI, etc.)

7. Enter amount and pay

8. Download challan (ITNS 280)

– Save it for ITR filing

.7Verify and Track Refund

.After filing, verify the return and wait for assessment/refund.

. Methods to Verify ITR (Online):

1.Aadhaar OTP

     .Link Aadhaar with PAN

     .Get OTP on mobile linked with Aadhaar

 2.Net Banking

     .Login to your bank → Find “Income Tax e-Filing” → Auto-verifies

3.EVC via Bank Account/Demat Account

     .Pre-validate in e-filing portal → Get EVC to verify

4.Digital Signature Certificate (DSC)

     .Mostly used by professionals and companies

.Example (FY 2024-25, Individual <60, Old Regime):

Income Tax Rate

₹0 – ₹2.5 lakh Nil
₹2.5 – ₹5 lakh 5%
₹5 – ₹10 lakh 20%
Above ₹10 lakh 30%

+ 4% Health & Education Cress on total tax

Government Tool Tax in 2025

    Government Tax Tools in 2025 - Explained

In 2025, government (especially in countries like India, USA, UK, and other) are increasingly 
using digital tools to make tax collection more efficient, transparent, and data-driven.

Here’s a breakdown of the key government tools for tax administration in 2025:

    1. AI-Powered Tax Intelligence System

  Governments now use Artificial Intelligence(AI) to:

.   Detect tax evasion and fraud through data pattern analysis.

.   Automate risk-based scrutiny of return (e.g., income tax or GST data, foreign assets, etc.

   Example (India):

   . AIS 2.0 (Annal Information Statement) now integrates real-time data from PAN, TDS, banks, mutual funds, and crypto exchange.

2. Unified Digital Portals

 Modern tax systems are centered around single-window portals for filing, tracking, and   managing taxes.

Country	Portal	Features
India	Income Tax Portal (www.incometax.gov.in)	ITR filing, e-verification, refunds, AIS, TIS
India	GST Portal (www.gst.gov.in)	GSTR filings, e-Invoice, e-Way Bills
USA	IRS e-Services	e-Filing, tax transcripts, refund tracking
UK	HMRC Gateway	Tax account, VAT returns, self-assessment

3. Real-Time Reporting and e-Invoicing

 Government mandate businesses to use:

. e-Invoicing system (invoice data shared in real- time with tax authorities) 

. e-Way Bill system for goods transport ( India) 

.  Digital VAT ledgers (Europe)

This helps stop tax leakage and under-reporting.

 4. Faceless & Automated Assessments

Tax scrutiny and processing in 2025 is:

. Faceless (no personal interaction to reduce corruption)

. Automated (via backend systems, based on risk scoring)

India’s Faceless Income Tax Assessment continues to evolve, now handling most scrutiny and appeals digitally.

5. Global Exchange of Information Tools

Under OECD’s Common Reporting Standard (CRS), countries now automatically share financial data to catch undeclared assets abroad.

. Tax havens are declining.

. More Indians and Americans are being flagged for foreign income mismatches.

 6. Crypto & Digital Asset Tax Tools

In 2025, most countries now have crypto tax tracking systems:

. India uses VDA tax forms (30% tax + 1% TDS)

. Blockchain surveillance is linked to exchanges

. NFTs, DeFi, and metaverse income are tracked

 7. Customs & Indirect Tax Tools

Tools include:

. ICEGATE (India): Customs portal for imports/exports

. e-Sanchit: Digital document submission

. HS Code Automation: Auto-categorizes goods for duty calculation

 Future Trends (2025–2030)

. Chatbot-based tax assistance (already live on Indian portals)

. AI-generated ITRs (auto-filled from 10+ sources)

. Global Digital Tax (OECD Pillar Two: 15% minimum corporate tax)

.Blockchain-based tax recordkeeping

Benefit in Insurance Company For Health Insurance In India

 Benefit in Insurance Company For Health Insurance In India

    Health insurance in India provides a range of benefits for policyholders through insurance companies. Here's a detailed overview of the key benefits:

 1.  Financial Protection Against Medical Expenses

       

        .   Covers hospitalization costs (pre and post).

        .   Includes surgeries, doctor fees, room, rent, ICU charges, medicines, and diagnostic                                  tests.

        .   Reduces out-of-pocket expenses during emergencies.

 2.  Cashless Hospitalization 

      

        .   Tie-ups with network hospital allow you You to get treated without paying upfront.

        

        .   The insurance company directly settles the bill with the hospital.

 

 3. Pre & post Hospitalization Coverage

        .     Expenses incurred before and after hospitalization (usually 40 days prior

              and 70-100 days after) are covered.

        .    Include diagnostic tests, follow-up consultations, and medications.   

 4. Daycare Procedures 
 

         . Covers treatment that don t require 48-hours hospitalizations, such as cataract

           surgery, chemotherapy, etc.

 5. Tax Benefits (Under Section 80D of the Income Tax Act)

        .   Premiums paid are eligible for tax deduction:

        .   Up ₹26,000 per year for self/family.

        .   Additional ₹26,000-₹52,000 for parents (especially if senior citizens).

 6. No Claim Bouns (NCB)

          . If no claim is made in a year ,the sum insured is increased (usually by 5-50%) 

   

             without extra premium. 

 7. Lifetime Renewability

          .  Most policies offer lifetime renewability ensuring continued protection regardless of

              age. 

 8. Coverage for Alternative Treatments (AYUSH)

           . Many plans cover Ayurveda, Yoga, Unani, siddha, and Homeopathy treatments

             under AYUSH benefits,

 9. Ambulance Charges 

           .  Reimbursement or coverage for ambulance services during emergency.

 10. Maternity & Newborn Cover
        (Optional/After Waiting period)

       . Covers maternity expenses and newborn care (subject to conditions).

 11. Health Checkups

         . Free annual health checkups or reimbursements offered by some insurers.

 12. Mental Health & Wellness 

         . Modern policies may include may mental health coverage, wellness programs,                                         telemedicine consultations, etc.

 

  

       

Government of India: Direct Tax Collection Highlights

                                   Government tax 2025                    

                                                                                                                 Owner by PRITAM KUMAR

India's direct tax collections for the financial year 2024–25 have shown significant growth, reflecting a robust economic environment and improved tax compliance. Here's an overview of the key figures and developments:

📊 Direct Tax Collection Highlights

• Total Gross Collections: ₹20.64 lakh crore, up 19.94% from ₹17.21 lakh crore in FY 2023–24.

• Net Collections: ₹16.89 lakh crore, marking a 15.88% increase year-on-year.

• Corporate Tax: ₹7.68 lakh crore, up 8.12% from the previous year. 

• Personal Income Tax: ₹8.74 lakh crore, reflecting a 21.6% rise. 

• Securities Transaction Tax (STT): ₹44,500 crore, a 75% increase from the previous year. 

• Refunds Issued: ₹3.74 lakh crore, up 42.5% year-on-year. 

🧾 Key Reforms Under the Direct Tax Code (DTC) 2025

The DTC 2025 introduces several significant changes aimed at simplifying and streamlining the tax system:

1. Capital Gains Tax: Short-term capital gains on financial assets are now taxed at 20%, up from 15%, while long-term capital gains are taxed at 12.5%, down from 20%.

2. Unified Tax Rate for Companies: Both domestic and foreign companies will now be subject to the same tax rate, simplifying compliance and encouraging foreign investment. 

3. Tax Deducted at Source (TDS) and Tax Collected at Source (TCS): The TDS rate for many payments has been reduced from 5% to 2%, and for e-commerce operators, it has decreased from 1% to 0.1%.

4. Simplified Residential Status: Taxpayers are now classified into just two categories: Residents and Non-Residents, eliminating the RNOR (Resident but Not Ordinarily Resident) category. 

5. New Income Category Names: "Income from Salary" is now termed "Employment Income," and "Income from Other Sources" is now "Income from Residuary Sources." 

7. Expanded Roles for Tax Audits: Company Secretaries (CS) and Cost and Management Accountants (CMA) are now authorized to conduct tax audits, alongside Chartered Accountants (CAs). 

8. Limited Deductions and Exemptions: Most existing tax deductions and exemptions have been removed, though the standard deduction for salaried employees has been increased from ₹50,000 to ₹75,000. 

🏢 Corporate Contributions

• Adani Group: Paid nearly ₹75,000 crore in taxes during FY 2024–25, a 29% increase from the previous year, encompassing both direct and indirect taxes. 

These developments indicate a positive trajectory for India's tax system, characterized by increased revenue collections and comprehensive reforms aimed at enhancing efficiency and compliance.

🧾 Key Changes in Income Tax Slabs (New Regime)

The new tax regime has been made the default option, though taxpayers can still opt for the old regime if it offers greater benefits. Notable updates include

Basic Exemption Limit: Increased from ₹3 lakh to ₹4 lakh.

• Standard Deduction: Raised from ₹50,000 to ₹75,000 for salaried individuals.

• Tax Rebate under Section 87A: Enhanced to ₹60,000, ensuring zero tax liability for taxable incomes up to ₹12 lakh.

• Revised Tax Slabs:

  Income Range (₹)	Tax Rate
  Up to ₹4,00,000	0%
  ₹4,00,001 – ₹8,00,000	5%
  ₹8,00,001 – ₹12,00,000	10%
  ₹12,00,001 – ₹16,00,000	15%
  ₹16,00,001 – ₹20,00,000	20%
  ₹20,00,001 – ₹24,00,000	25%

Above ₹24,00,0091 30%

💼 Old Tax Regime (Optional)

The traditional tax regime remains available, allowing taxpayers to claim various exemptions and deductions. The tax slabs for individuals below 60 years are:

Income Range (₹)	Tax Rate
Up to ₹2,50,000	0%
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

• 📈 Additional Reforms Capital Gains Tax: Short-term capital gains on financial assets are now taxed at 20% (up from 15%), while long-term capital gains are taxed at 12.5% (down from 20%). Simplified Tax Filing: The terms "Assessment Year" and "Previous Year" have been removed; only "Financial Year" will be used for tax filing. Tax Deducted at Source (TDS): The TDS rate for many payments has been reduced from 5% to 2%, and for e-commerce operators, it has decreased from 1% to 0.1%. Tax Filing Requirements: For Assessment Year 2025-26, taxpayers—particularly under the old income tax regime—are now required to provide detailed documentation when filing their Income Tax Returns (ITR) to claim deductions and exemptions.  🌍 For Non-Resident Indians (NRIs) The proposed New Income Tax Bill 2025 introduces a forex fluctuation benefit for NRIs, allowing them to factor in currency exchange rate variations while computing gains on equity investments made in India. This provision ensures that NRIs are taxed only on actual gains after accounting for currency fluctuations, rather than artificial gains caused by currency movements.  These reforms aim to simplify the tax structure, increase disposable income, and encourage economic growth. Taxpayers should evaluate both tax regimes to determine which offers the most benefits based on their individual financial situations. 🧾 Major Changes in Direct Tax Code 2025 1. Revised Income Tax Slabs (New Regime) The new tax regime has been revamped with updated income tax slabs: Income Range (₹) Tax Rate Up to ₹4,00,000 0% ₹4,00,001 – ₹8,00,000 5% ₹8,00,001 – ₹12,00,000 10% ₹12,00,001 – ₹16,00,000 15% ₹16,00,001 – ₹20,00,000 20% ₹20,00,001 – ₹24,00,000 25% Above ₹24,00,000 30% With the increased standard deduction of ₹75,000, individuals with taxable income up to ₹12.75 lakh will effectively pay no income tax under the new regime.  2. Enhanced Rebate under Section 87A The rebate under Section 87A has been increased to ₹60,000, allowing individuals with taxable income up to ₹12 lakh to avail of a full tax rebate, resulting in zero tax liability. 3. Capital Gains Tax Reforms Capital gains will now be taxed as part of regular income: Short-term capital gains on financial assets: Taxed at 20% (up from 15%). Long-term capital gains: Taxed at 12.5% (down from 20%). 4. Simplified Residential Status The classification of taxpayers has been simplified: Residents Non-Residents The category of Resident but Not Ordinarily Resident (RNOR) has been removed.  5. New Income Category Terminology The nomenclature for income categories has been updated: “Income from Salary” is now “Employment Income”. “Income from Other Sources” is now “Income from Residuary Sources”. 6. Expanded Roles for Tax Audits Company Secretaries (CS) and Cost and Management Accountants (CMA) are now authorized to conduct tax audits, in addition to Chartered Accountants (CAs). 7. Unified Company Tax Rates Domestic and foreign companies will now be subject to the same tax rate, simplifying compliance and encouraging foreign investment. 8. TDS and TCS Rationalization The Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) rates have been revised: TDS rate: Reduced from 5% to 2% for many types of payments. E-commerce operators: TDS rate reduced from 1% to 0.1%.  9. Limited Deductions and Exemptions Most existing tax deductions and exemptions have been removed. However, the standard deduction for salaried employees has been increased from ₹50,000 to ₹75,000 under the new tax regime.  10. Removal of Assessment and Previous Year Concepts The terms “Assessment Year” and “Previous Year” have been removed; only the term “Financial Year” will be applicable for tax filing. 📝 Filing Requirements for AY 2025-26 For the Assessment Year 2025-26, taxpayers—particularly under the old income tax regime—are now required to provide detailed documentation when filing their Income Tax Returns (ITR) to claim deductions and exemptions. The new ITR utility mandates disclosure of specific information such as insurance company names, policy numbers, housing loan and rent details, and particulars of health insurance. For HRA claims, details such as place of work, actual HRA received, rent paid, and landlord information are necessary. Deductions under sections 80C and 80D now require respective policy or receipt numbers, account numbers for PPF, and names of health insurers. Donations to political parties mandate registration number disclosures, and deduction claims for medical treatment require information on specific ailments. Experts note these changes aim to reduce fraudulent claims by enabling the tax department to cross-verify the eligibility of deductions. With the filing deadline extended to September 15, tax professionals urge individuals to compile all necessary documents in advance to ensure accurate and audit-compliant filings. These reforms aim to simplify the tax structure, increase disposable income, and encourage economic growth. Taxpayers should evaluate both tax regimes to determine which offers the most benefits based on their individual financial situations.

Manager  by SANDEEP KUMAR