education cess act

Income Tax Act 1961 deals itself deals with educational cess.  Refer any book on Income Tax, you can see it immediately following the  tax-slabs.

I have given here in below  extracts of  Finance Act of Last year.:

Section 192 of the Income-tax Act, 1961 - Deduction of tax at source - Salary - Income-tax deduction from salaries during the financial year 2009-10

CIRCULAR NO. 1/2010 [F. NO. 275/192/2009 IT(B)], DATED 11-1-2010

Reference is invited to Circular No. 8/2007, dated 5-12-2007 whereby the rates of deduction of income-tax from the payment of income under the head “Salaries” under section 192 of the Income-tax Act, 1961, during the financial year 2008-09, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2009-10 and explains certain related provisions of the Income-tax Act. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income-tax Department -www.incometaxindia.gov.in.

Finance Act, 2009

2. As per the Finance Act, 2009, income-tax is required to be deducted under section 192 of the Income-tax Act, 1961 from income chargeable under the head “Salaries” for the financial year 2009-10 (i.e., assessment year 2010-11) at the following rates :—

RATES OF INCOME-TAX

A. Normal Rates of tax :—

B. Rates of tax for a woman, resident in India and below sixty-five years of age at any time during the financial year :—

C. Rates of tax for an individual, resident in India and of the age of sixty-five years or more at any time during the financial year :—

Surcharge on Income tax :

There will be no surcharge on income-tax payments by individual taxpayers during financial year 2009-10 (assessment year 2010-11).

Education Cess on Income tax :

The amount of income-tax shall be further increased by an additional surcharge (Education Cess on Income-tax) at the rate of two per cent of the income-tax.

Additional surcharge on Income-tax (Secondary and Higher Education Cess on Income-tax) :

From financial year 2007-08 onwards, an additional surcharge is chargeable at the rate of one per cent of income-tax (not including the Education Cess on income-tax).

Education Cess, and Secondary and Higher Education Cess are payable by both resident and non-resident assessees.

thanks Sanjay.

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