Is education cess applicable on TDS?

*1. Surcharge, Education Cess and Secondary & Higher Education Cess are applicable for TDS purposes in the case of tax deduction from payment of salary to a resident or a non- resident or a foreign company. In no other case are applicable for TDS purposes.

Is surcharge and education cess applicable on TDS u/s 195?

Rate of TDS under Section 195 For payments made according to DTAA rates, no additional education cess or surcharge is applicable.

Is surcharge applicable on TDS on property?

TDS on sale of property TDS is applicable when receipts are of more than Rs 50 lakh. This TDS must be deducted @1 per cent by the buyer at the time of making the payment. Do note that no surcharge or cess is applicable on this 1 per cent TDS deducted.

Is surcharge and education cess applicable on TDS u/s 194LC?

Rate of TDS under Section 194LC The rate of TDS shall be 5% of such gross interest plus surcharge if applicable. Notes: Education cess or SHEC shall be added to the above rates and surcharge if applicable.

Is education cess mandatory?

An education cess is an additional levy that is applied on the basic tax liability by the Government to generate additional revenue to fund primary, secondary and higher education. Apart from individuals, even corporations are required to pay this cess every year at rates determined during the annual budgets.

What is 4% education cess?

The cess, levied at 4 percent of the tax payable, is imposed as an additional surcharge on taxpayers for funding select government welfare programmes, specifically primary and secondary education, and health infrastructure.

Is cess applicable on 206AA?

cess cannot be levied on the amount of tax deducted at source under Section 206AA(1)((iii) of the Act.

How much is cess on TDS?

A surcharge of 10% is levied if an individual’s income is more than Rs. 50 Lakh and a surcharge of 15% are levied if the individual’s income is more than Rs 1 crore. In the case of companies, it is levied if the income is more than Rs. 1 Crore.

Is education cess applicable on surcharge?

Surcharge : Surcharge is levied @ 12% on the amount of income-tax where net income exceeds Rs. 1 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income-tax plus surcharge.

What is education cess percentage?

While the rate for education cess is 2 percent of the payable tax, the Secondary and Higher Education cess is 1 percent of the tax amount. So, totally, the rate of education cess is 3 percent of the amount of tax.

What percentage is education cess?

What is education cess?

Definition: Education cess is an additional levy on the basic tax liability. Description: Governments resort to imposition of cess for meeting specific expenditure. For instance, both corporate and individual income is at present subject to an education cess of 2%.