Cess and surcharge as deductions Subject: Economy Section: Fiscal policy Context: India’s fiscal federalism turning into coercive because of increasing cess and surcharges Cess and surcharge are the taxes levied by the Union Government in order to raise funds for government operations. Though both Cess and Surcharge add money to the government’s revenue, […]

    Cess and surcharge as deductions Subject :Economy Section :Fiscal policy Context: The Finance Ministry has proposed that deduction claimed for cess and surcharge under the Income Tax Act will be treated as “under-reported” income. Amendment to Finance Bill inserts a new clause to Section 155 of the IT Act. If declared ‘under-reported’, total […]