Cess

Tax Glossary Definition

Cess

A cess is an additional tax or levy imposed by the government on the basic income tax amount to raise funds for a specific purpose, such as health, education, or infrastructure development. Unlike regular taxes, a cess is collected for a targeted use and cannot be used for general expenditure.

Example: The Health and Education Cess of 4% is levied on the income tax payable to fund government initiatives in healthcare and education.

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