Originally Posted by serpentblade
This is a hypothetical question!(Please note: some were asked during a student discussion.)
1)Since Taxes in Karnataka State is the highest why is it so?
2)Does On road price include Income tax?
3)luxury cars of 50lakhs and above sold by international dealers like BMW,AUDI,PORSCHE etc.. do they cover the price for entire process of all taxes and registration when buying new cars?
4)Very hypothetical: since a friend of mine in UK won a car,
if it happens in india: Incase of Payment for any luxury cars of 80lakhs+ is paid for by the sponsors of the competition inclusive of all registration and road tax(considering only luxury brands).Is there any other taxes needed to pay by the winner
1) Its purely a state government's decision. The reason told is Karnataka have invested a lot on the roads and other related infrastructure.
Unfortunately the fact is many roads are in very pathetic condition.
2) No. But as the amount is flown in through bank accounts there the income tax part will be taken care according to the type of account (fixed/ savings).
3) Generally car dealers will do the registration and road tax payment on behalf of the owner, but it will not be included in the car price.
They will mention it separately as "Registration charges".
4) Even if the registration, road tax etc are taken care by the gift sponsor the winner will have to pay an income tax of 30.8% of the total value as of today.
The tax on his other incomes (salary etc) will remain same as before. If the car is sold then the amount need to be shown as 'Income from other sources' in the ITR filing, and the income tax will be levied for it.