Cess and Surcharge

 DIFFERENCE BETWEEN CESS AND SURCHARGE?

                                          CESS

(1) Authority calculate cess on the surcharge and the Total tax.

(2) The Govt. levies cess on every Taxpayer.

(3) Authority use cess for a particular use only and can not use it for any arbitrary reason.

(4) Cess aims to raise funds for some particular expenditure cause.

(5) In current Financial year cess rate fixed @ 4%.

                            

                                        SURCHARGE

(1) Surcharge is calculated on the total Tax amount only. 

(2) The Government levies a surcharge on those individuals who have a higher taxable income.

(3) A surcharge, on the other hand, can be used for any reason. The reason does not have to be specified.

(4) A surcharge aims to place a tax burden on those whose income is beyond Rs. 50 lakh.

(5) The surcharge rate varies among 10%, 15%, 25%..... depending on the total income of a taxpayer.