1. There are few main categories of taxes at the individual level:

Income tax: This is paid on all income made by the individual. The tax rate depends on the income level of the person. Income does not include gain value of assets. But dividends and business income are taxed at the same rate as Income Tax.       

Capital gains tax: This tax is applied on the profit made on an asset after comparing with its purchase price. Capital gains tax depends on length of holding period of the asset. If held for short period of time, STCG (Short Term Capital Gains Tax) is applied while if the holding period is long, then Long Term Capital Gains tax (LTCG) is applied. The capital gain used in these taxation related calculations is based on actual gain when the asset is sold and not any notional gain in case the asset is not sold.            

Stamp duty: This is paid on transfer of assets example real estate or shares

TDS is Tax Deducted at Source. The government stipulates that TDS must be deducted at source for certain transactions. A well-known example of this is TDS applied to salary. The taxpayer can then file for any tax refund if there are any exemptions that the taxpayer is entitled to.

2. Income is classified in different categories depending on underlying economic activity and is taxed differently

3. Two important things play a role in your taxation specially if your nationality is different from the country you live in:

a. Your residency status: Most countries define a tax resident as someone who spends 180 days in that year in the country. The salary you earn, the investments you make are taxed as per the taxation laws of the country you spend at least 180 days in. As a resident of UAE for more than 180 days the salary and other income, gains are taxed as per UAE laws.

b. Your nationality status: India does not tax income that you earn as a resident of UAE, but any India sourced income is taxed by India. So even if you live in UAE, the income, gains you make from real estate, shares and other assets of the Indian economy will be taxed as per Indian tax laws.

Type of income	Taxation
Salary	Income tax
Interest	Income tax
Profit on sale of listed equity shares, equity mutual funds and equity oriented balanced mutual funds	LTCG if held for more than 1-year else STCG
Profit on sale of listed equity shares, equity mutual funds and equity oriented balanced mutual funds	LTCG if held for more than 1-year else STCG
Profit on sale of unlisted shares	LTCG if held for more than 3 years and STCG if less than 3 years
Profit on sale of property	LTCG if held for more than 3 years and STCG if less than 3 years

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