## Health & Education Cess
- Rate: 4%
- Levied on: (Tax + Surcharge, if any)
- Applicable: in all cases, irrespective of total income level or type of assessee.
- Computed at the end, after surcharge.
- Always compulsory — no rebate, no exemption from cess.
Microlesson · 5-min read
Health and Education Cess
Worked example
### Example 1
If Tax = ₹16,12,500 and Surcharge = ₹1,61,250, then:
Cess = 4% × (16,12,500 + 1,61,250) = 4% × 17,73,750 = ₹70,950
⚠️ Common exam mistakes
- Computing cess only on basic tax and ignoring surcharge.
- Skipping cess for cases where rebate u/s 87A brings tax to nil — but if no tax is payable, no cess is payable either (cess is 4% of zero).
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