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Abolition Education Cess

Deepak Kakkar (Consultant) (32 Points)

09 August 2009

Hi,

Please clarify the effective date of abolition of Education cess and Secondary and Higher education cess.

Regards,

Deepak Kakkar

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11 Replies

(Guest)

Hi Deepak,

Finance act 2009 has not announced any date for abolition of EC or SHEC. So its not gonna happen.,.,!!! Sorry!!

NiTiN JAiN (TAX CONSULTANT & CA FINAL STUDENT) (155 Points)
Replied 09 August 2009

both ed cess & Sec & higher ed cess has not been removed at all. Both are liable now & to be continued. It is only the surcharge that has been removed w.e.f. F.Y. 2009-10

N.Siva Prasad (Chartered Accountants) (29 Points)
Replied 09 August 2009

Education cess and Secendory and Higher Education cess or not abolished. What has been with drawn is surcharge which will come in to effect for assessment year 2010-2011. With the bill for universal educaion being passed and the primary education being made compulsory there is a likely hood of the cess being continued if not enhaned.

N. Siva Prasad

ACMA Ayan Paul (Analyst-Corporate Rating at CARE Ratings) (284 Points)
Replied 10 August 2009

Education cess has not been abolished ,its true but as far i know form 1.10.2009 while deducting tax at source one must not charge 3% on TDS rate.its flat 1%,2%,10%,20% whichever is applicable.but surcharge has been abolished.

CA. Amit G. Chandani (Entrepreneur/Consultant) (1312 Points)
Replied 10 August 2009

Only surcharge on pesrsonal income tax abolished from A.Y 2010-2011, Education cess will continue. Surcharge still applicable on companies and firm if their income exceeds Rs.1 crore.

Mannurkar (Accountant) (159 Points)
Replied 11 August 2009

Education cess and secondary & higher education cess need not be charged while deducting tax for payments made during the FY 2009-10 to domestic companies and resident persons except for salary payments. PL GO THROUGH PROVISO TO SUB CLAUSE 11 AND 12 OF CLAUSE 2 IN CHAPTER II OF THE FINANCE(No 2) BILL,2009