Question

Health and education cess is applicable to -

• A. All assesses
• B. All assesses except company
• C. Individual / HUF
• D. Company only

Hint:

A 'cess' is a tax on tax for a specific purpose. The Health and Education Cess is a universal levy in India's direct tax system, applicable to every single taxpayer, whether an individual or a large corporation.

Answer 1

The Correct Option is A

Health and Education Cess is a tax levied on the amount of income tax payable (including surcharge, if any). It is not a tax on income itself but a tax on tax. It is levied to fund specific government expenditure on health and education. This cess is applicable to all categories of taxpayers (assessees), including individuals, Hindu Undivided Families (HUFs), companies, firms, etc., who are liable to pay income tax. There are no exceptions based on the type of assessee.