Various transactions can be subject to taxation, including but not limited to: income from employment, business profits, capital gains from selling assets, dividends from investments, rental income, and interest earned on savings.

Taxes on transactions in India are typically calculated based on specific rules and rates set by the government. For example, income tax is calculated based on the individual's income slab, while capital gains tax depends on the type and duration of the asset sold.

Yes, the Indian tax laws provide for various exemptions and deductions to reduce the tax burden on certain transactions. Common examples include exemptions on agricultural income, deductions for investments in specified schemes like Provident Fund or Equity Linked Savings Scheme (ELSS), and deductions for expenses related to business or profession.

Failure to report transactions or underreporting income can lead to serious consequences, including penalties, fines, and legal action by the tax authorities. Additionally, it can damage one's financial reputation and lead to increased scrutiny in future tax assessments.

To ensure compliance with transaction tax laws in India, individuals can maintain accurate records of their transactions, keep track of applicable deadlines for filing tax returns and making tax payments, seek professional advice when needed, and stay updated on changes to tax laws and regulations.