Aggregate amount of Income tax and Surcharge (if applicable) is further subjected to 4% additional tax called ‘Health and Education Cess’, in respect of FY 2020-21/ Ay 2021-22.
In other words, taxpayers are required to pay 4% Health and Education Cess on the aggregate amount of Income Tax and Surcharge (if applicable) for FY 2020-21/ AY 2021-22.
It may be noted that the new cess named as “Health and Education Cess” @ 4% has been levied from FY 2018-19/ AY 2019-20 in lieu of “Education Cess” @ 2% and “Secondary and Higher Education Cess” @ 1% which was being levied upto FY 2017-18/ AY 2018-19.
|Income Tax Slabs/ Rates:||Income Tax Cess, Surcharge & Rebate|
|Resident Individuals||Education Cess Rates|
|NRIs/ HUFs/ AOP/ BOI/ AJP||Surcharge Rates|
|Partnership Firms and LLPs||Marginal Relief from Surcharge|
|Domestic Companies||Rebate u/s 87A for Individuals|