Education Cess on Income Tax for F.Y. 2016-2017 (A.Y. 2017-2018)

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  1. Kapil Tiwari

    Kapil Tiwari New Member

    Dear Friends,
    Kindly advise what is the Education Cess payable on Income Tax for F.Y. 2016-2017 (A.Y. 2017-2018).
    Is it the same as what was applicable for F.Y. 2015-2016 (A.Y. 2016-2017), that is 3%? Or, has it changed?
    Thanks.
     
  2. ZED

    ZED Well-Known Member

    It's same, you may refer to the extracts of S.2 of Finance Act 2016 cited below.



    S.2(11) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for purposes of the Union, to be called the “Education Cess on income-tax”, calculated at the rate of two per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance universalised quality basic education:

    Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India.


    S.2(12) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall also be increased by an additional surcharge, for purposes of the Union, to be called the “Secondary and Higher Education Cess on income-tax”, calculated at the rate of one per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance secondary and higher education: Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India
     
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  4. Kapil Tiwari

    Kapil Tiwari New Member

    ZED, so the total education cess is 3% to be added on to the Income Tax. Am I right? Thanks.
     
  5. ZED

    ZED Well-Known Member

    Yes.
     
  6. Kapil Tiwari

    Kapil Tiwari New Member

    Many thanks.
     
    ZED likes this.
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