An estimated Rs 2,82,212 crore revenue will be generated through cess and surcharge in 2017-18, Finance Minister Arun Jaitley said today.
An estimated Rs 2,82,212 crore revenue will be generated through cess and surcharge in 2017-18, Finance Minister Arun Jaitley said today. Jaitley said in Lok Sabha that the total revenue generated through cess and surcharge during 2014-15 was Rs 1,19,276.65 crore, which increased to Rs 2,65,661.61 crore in 2016-17.
“The estimated revenue likely to be generated through cess and surcharge in the financial year 2017-18 is Rs 2,82,211.98 crore,” he said during Question Hour.
The Minister said under the Income Declaration Scheme 2016, a surcharge under the name of Krishi Kalyana Cess was levied at the rate of 25 per cent of the tax, that is at the rate of 7.5 per cent of the undisclosed income declared under the scheme.
The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana (2016) has been introduced under which a surcharge under the name of Pradhan Mantri Garib Kalyan Cess at the rate of 33 per cent of tax is levied.
Jaitley said ‘Education Cess on Income Tax’ at two per cent and ‘Secondary and Higher Education Cess’ at one per cent, are levied by the government every year through the Finance Act.
Originally, the education cess was introduced in the tax proposals of budget 2004 and secondary and higher education cess was introduced in the tax proposals of budget 2007.
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The Minister said the Finance Bill 2017 has proposed to levy a new surcharge for 2017-18 in case of an individual, Hindu undivided family, association of person, body of individuals or artificial juridical person at the rate of 10 per cent of such tax, where the taxable income exceeds Rs 50 lakh but does not exceed Rs one crore.
Replying a supplementary, Jaitley said such cess and surcharges were levied so that the government could spend the amount in building roads, schools, hospitals and building and other infrastructure.