ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The Government of India levied a 2% education cess on all union taxes so that the revenue generated by the government from this provision could be spent on financing elementary education. Q. Which tax was imposed by the colonial government on the pastoralists? Q.

Detailed explanation-2: -Education Cess Rate This is then applied to the taxable income. Education cess rate is 2% of the tax payable. The Secondary and Higher Education Cess rate is 1% of the tax payable. Jointly, these make the education cess rate of 3% that is applicable on the tax payable.

Detailed explanation-3: -The rate for education cess amounts to 2 percent of the total taxable amount whereas the secondary and higher education cess is 1 percent of the total taxable amount making the comprehensive rate of education cess to be 3 percent of the amount of tax.

Detailed explanation-4: -This particular tax is charged only on the amount of tax that needs to be paid instead of the entire taxable income. This cess is charged in two distinct parts, and while the 1st part is levied as Primary Education Cess, the 2nd part is charged as Secondary and Higher Education Cess.

Detailed explanation-5: -Education cess in India While this was helping students to complete primary education, the Government realized the need for access to secondary and higher education as well and through Finance Act 2007 introduced an additional secondary and higher education cess of 1% to fund secondary and higher education cess.