Earlier

Education Cess was charged on Tax at 3%

Now

It will be charged at 4%

Name also changed to Education and Health Cess

 

FINANCIAL YEAR 2017-18
(AY 2018-19)
FINANCIAL YEAR 2018-19
(AY 2019-20)
EDUCATION CESS  EDUCATION AND HEALTH CESS
3% OF TAX 4% OF TAX

 

 

However, income Tax Slab Rate and Cess Remains the Same

Old Slab rate.jpg

Slab Rate 1.jpg

 

Example

Calculation of Tax on Income of Rs 340000

Income Tax New Slab rate.jpg

 

  1. Tax Practical
  2. Budget Amendments - Changes in 2017-18
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .