For the tax year 2026-27, Health and Education Cess at 4% is levied on

The 4% Health and Education Cess, levied through the annual Finance Act (the Finance Act, 2026 for tax year 2026-27 under the Income-tax Act, 2025), is charged on the amount of income-tax computed including the surcharge. For example, if income-tax is ₹ 10,00,000 and surcharge at 10% is ₹ 1,00,000, the cess is 4% of ₹ 11,00,000 = ₹ 44,000. It is not charged on income, total or gross, and leaving out the surcharge understates it.