GG News Bureau
New Delhi, 1st Feb. ‘Health and Education Cess’ is not allowed as business expenditure. This was clarified by Finance Minister Nirmala Sitharaman while presenting the Union Budget in the Parliament on Tuesday.
Sitharaman said that the income-tax is not an allowable expenditure for computation of business income. This includes tax as well as surcharges.
She further explained, The ‘Health and Education Cess’ is imposed as an additional surcharge on the taxpayer for funding specific government welfare programs.
Noting that some courts have allowed ‘Health and Education Cess’ as business expenditure, which is against the legislative intent, the Finance Minister reiterated that any surcharge or cess on income and profits is not allowable as business expenditure.
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