What is CESS ?
In the Indian financial and taxation context , CESS refers to a specific type of tax levied by the government to fund targeted public welfare programs. It is not a general revenue tax , but rather an additional charge on existing taxes like income tax, GST, or excise duty. 🔍 Full Form & Meaning of CESS in Finance CESS = Tax on Tax It is levied over and above the base tax (e.g., income tax or GST). The revenue from cess is deposited in the Consolidated Fund of India (CFI) but is earmarked for specific purposes only . 🏛 ️ Common Types of CESS in India Health and Education Cess Rate : 4% on income tax (including surcharge) Purpose : Funds mid-day meals, government schools, education loans, and healthcare initiatives. Infrastructure Cess Levied on fuel or vehicles to fund road and transport inf...