ECONOMICS
HUMAN CAPITAL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1 percent
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2 percent
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4 percent
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None of these Government has imporsed 2 percent education cess on all union taxes. this tax is used to fund the government expenditure on providing free education.
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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. In order to calculate this, assume a person earns 8 Lakhs per year.
Detailed explanation-4: -Health and education cess was introduced by late Finance Minister Arun Jaitley in Union Budget 2018 replacing the earlier secondary and higher education cess of 3 per cent. “Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
Detailed explanation-5: -Generally, cess is expected to be levied when there is a need to meet specific expenditure for public welfare and discontinued once the government gets enough funds for that purpose. The 4% health and education cess is the same for everybody, irrespective of which income tax slab one falls in.