GENERAL KNOWLEDGE

Detailed explanation-1: -In addition to surcharge, all individuals who are liable to pay income tax also have to pay health and education cess on the tax payable. Health and Education Cess is payable at a rate of 4%. It is levied on the tax payable and not on the underlying income. For example, if an income of Rs.

Detailed explanation-2: -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.

Detailed explanation-3: -Education cess rate is calculated at a rate which is basically a mix of two different kinds of cess that is charged on the taxable income. While the rate for education cess is 2 percent of the payable tax, the Secondary and Higher Education cess is 1 percent of the tax amount.