What is Cess on Income Tax?
cess is a form of tax levied by the government on tax with specific purposes
till the time the government gets enough money for that purpose. Currently Income Tax is charging Cess for the
purpose of Health and Education Cess.
Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
Note: A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A
. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.