For the tax year 2026-27, the Health and Education Cess of 4% levied by the Finance Act, 2026 on…

Section 3 of the Finance Act, 2026 levies the 'Health and Education Cess on income-tax' at 4% of the income-tax as increased by the surcharge, if any. The cess is therefore computed on income-tax plus surcharge, and not on income-tax alone, on gross total income or on total income. It replaced the earlier Education Cess (2%) and Secondary and Higher Education Cess (1%), which were also computed on income-tax plus surcharge.