“Education Cess” and “Secondary and Higher Education Cess” on Income-Tax

  • The amount of income-tax as increased by the union surcharge, if applicable, should be further increased by an additional surcharge called the “Education cess on income-tax”, calculated at the rate of 2% of such income-tax and surcharge, if applicable.
  • Education cess is leviable in the case of all assessees i.e. individuals, HUFs, AOPs / BOIs, firms, local authorities, co-operative societies and companies.
  • Further, “Secondary and higher education cess on income-tax” @1% of income-tax plus surcharge, if applicable, is leviable to fulfill the commitment of the Government to provide and finance secondary and higher education.

 

Income from Salary 

(salary paid by your employer)
Add: Income from house property  (add any rental income, or include interest paid on home loan)
Add:Income from business/profession  (income from freelancing or a business or profession)
Add:Income from capital gains  (income from sale purchase of shares or house)
Add:Income from other sources  (saving account interest income, fixed deposit interest income, interest income from bonds)
Gross Total Income
Deductions under chapter VI-A 
Net Total Income

Tax Payable on Net Total Income as per Individual Slab Rates-   ##

Add- Surcharge .                                                                                      ##

Total Income Tax inclu Surcharge                                                       ##

Less- Rebate under Section 87A                                                           NA

Total Tax Payable                                                                                    ##

Add-Cess  on Total Income Tax inclu Surcharge                             ##

Balance Tax Payable                                                                              ##

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