GENERAL KNOWLEDGE

Detailed explanation-1: -The method of calculation of the Secondary and Higher Education cess will be the same as in the case of Education Cess introduced in 2004 budget.

Detailed explanation-2: -An education cess is an additional levy that is applied on the basic tax liability by the Government to generate additional revenue to fund primary, secondary and higher education. Apart from individuals, even corporations are required to pay this cess every year at rates determined during the annual budgets.

Detailed explanation-3: -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.