Tax

Health and Education Cess

Flat 4% surcharge on income tax + any surcharge — applied across all slabs to fund health and education programmes.

Definition

The Health and Education Cess is a 4% charge on the total of income tax plus any surcharge. It applies across both old and new regimes and at every slab. The funds go towards specific health and education programmes per the Finance Act.

Cess is calculated last, after all other components: (Income Tax + Surcharge) × 4% = Cess. The final liability is Income Tax + Surcharge + Cess.

Example

Income tax ₹2L + surcharge ₹0 → Cess = ₹8,000 → Total ₹2.08L. With surcharge ₹20K → Cess = (₹2L + ₹20K) × 4% = ₹8,800 → Total ₹2.288L.

Calculators that use this

Income Tax India

Calculate India income tax under both Old and New regimes side-by-side. See which regime saves more, with 87A rebate, cess, and standard deduction applied.

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